A Predictive Model of Multi-Stage Production Planning for Fixed Time Orders

The traditional production planning model based upon a deterministic approach is well described in the literature. Due to the uncertain nature of manufacturing processes, such model can however incorrectly represent actual situations on the shop floor. This study develops a mathematical modeling framework for generating production plans in a multistage manufacturing process. The devised model takes into account the stochastic model for predicting the occurrence of faulty products. The aim of the control model is to determine the number of products which should be manufactured in each planning period to minimize both manufacturing costs and potential financial penalties for failing to fulfill the order completely