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An interactive decision support system for an aggregated production planning model

based on multiple criteria integer mixed linear scheduling.
A company focused on efficient production must design a process that guarantees the
fulfillment of its objective, which must be based on the satisfaction of demand. In addition,
it is essential that the company has a series of factors influencing its proper functioning,
such as resources, infrastructure, raw material, production capacity, among others.
This article shows us in its different sections the application of an aggregated production
planning model (APP) to a Portuguese company that produces construction materials. A
multicriteria mixed integer linear programming model (MCMILP) is developed with 3 very
punctual performance criteria: maximizing profits, minimizing backorders, and minimizing
workforce level changes.
The problem with Aggregate Production Planning (APP) is about determining optimal
production, workforce, and inventory levels for each planning period horizon for a given
set of production resources and constraints. Such planning usually involves a product or
family of similar products with small differences so that considering the problem from a
conglomerate point of view is justified.
It is assumed that product demand data are known with certainty; however, provisions for
forecast error can be incorporated. The aim is to meet the expected demand for products in
a cost-effective manner. Typical costs related to APPLICATION include payroll, hiring /
firing, overtime / working hours, and shortage of inventories / backorders. Numerous
application models with varying degrees of sophistication have been introduced over the
past four decades.
In general, there is a gap between the theoretical contributions of researchers and the
expectations of managers responsible for implementing aggregate production plans. The
purpose of this research is to close this gap by introducing a linear multicriteria mixed
integer programming (MCMILP) model that is a realistic and practical alternative to more
sophisticated and complex application models. The viability of the proposed model is
demonstrated through its application to solve a PPP problem of a Portuguese company
producing building materials. It also explains the development of a computerized decision
support system (DSS) to help managers "solve" similar PPP problems without having to
familiarize themselves with the theoretical complexities of the model. The DSS, based on
learning oriented search concept, systematically seeks the best solution, if there are
operational features of the system are designed to generate, evaluate and compare different
solutions through a series of interactive steps The greatest advantage of the DSS is that it
does not require the decision maker (DM) to understand the complexities of the multi-
criteria algorithm to solve the problem. Rather, the DSS guides the DM "to solve" the
problem in a way that requires the least amount of cognitive effort from the user.
The article presents a multiple criterion of mixed linear integers, a programming model to
solve the problems presented in aggregate production planning. The model has been
developed to optimize three performance criteria for a set of labor, production, and
inventory constraints. Performance criteria include: earnings, backorders and changes in
workforce level. To improve its application in practice, a decision support system based on
the model has also been included. We illustrate the use of the decision support system by
applying the model to solve a real aggregate planning problem faced by a Portuguese
company that produces construction products.
In recent decades, researchers have proposed some planning models, which have
experienced limited industrial applications due to their methodological complexities,
inflexible assumptions and impracticable solutions. The research is an attempt to bridge this
gap between the theory and practice of aggregate planning models. We believe that the
DSS presented in this study will greatly improve the application of MCMILP model in
practice, making it a better practical alternative to a more sophisticated and complex
aggregate planning models.
Future research may consider developing an interactive DSS that will help managers cope
with uncertain environments in contexts of uncertainty and/or inaccuracy of forecast data.
Another avenue worth expanding this research would be to find ways to incorporate new
restrictions and objective functions into the model in flexible and efficient ways. Even
modules to the current DSS that will allow the user to analyze the sensitivity of different
operating costs and parameters is another possible logical extension for this investigation.