Production Planning, Scheduling and Control 2019 30

Aggregate Planning - Manufacturing

Instructor: Carlos D. Paternina A., Ph.D.

A plant manufactures three product families using the same installation. There are two important
departments: molding and painting. All products go first to molding and then to paint. Each
department has 300 available hours of time per month. Historical data on the production
workshop indicates that the following times are required for each product:

Product Hours per unit of molding Hours per unit of painting

family Process 1 Process 2 Process 1 Process 2
A 0.1 0.2 0.4 0.5
B 0.3 0.25 0.3 0.2
C 0.25 0.35 0.2 0.1

Demand is distributed with normal probability (, 2)

Product Month 1 Month 2 Month 3

A (230,100) (250,100) (300,100)
B (450,225) (500,225) (650,225)
C (350,100) (350,100) (300,100)

Due to company policy, at least 95% of the demand for each month must be met. Current
inventory levels are 0, but inventory can be maintained at any level of any product. The costs of
maintaining inventory per period are:

Producto Después de moldeo Después de pintura

A $ 1.50 $ 2.25
B $ 1.00 $ 2.00
C $ 2.00 $ 3.75

DAt

Materia
prima DBt

DCt
Moldeo Pintura

Additionally, only 1000 units of certain raw material is available the first month. Type B parts
require 1 pound of this material per unit and each C unit requires 1.5 pounds. Formulate the
aggregate planning problem as a linear-integer program.
The unit production costs for product in each process per stage are shown in the following table.

Product Molding Painting

family Process 1 Process 2 Process 1 Process 2
A $10 $10 $4 $5
B $10 $8 $3 $2
C $15 $5 $2 $1

These costs increase for the third period by 5% in relation to the initial value. The internal material
transfer costs between each process and the storage sites are considered irrelevant.