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Production Planning Method Using the Push-back Heuristic Algorithm: Implementation in a Micro Filter Manufacturer in South Korea

  • Sung, Shin Woong (Department of Industrial and Systems Engineering, Korea Advanced Institute of Science and Technology) ;
  • Jang, Young Jae (Department of Industrial and Systems Engineering, Korea Advanced Institute of Science and Technology) ;
  • Lee, Sung Wook (Deloitte Analytics, Deloitte Anjin LLC)
  • Received : 2015.08.18
  • Accepted : 2015.12.02
  • Published : 2015.12.30

Abstract

In this paper, we present a modeling approach to production planning for an actual production line and a heuristic method. We also illustrate the successful implementation of the proposed method on the production line. A heuristic algorithm called the push-back algorithm was designed for a single machine earliness/tardiness production planning with distinct due date. It was developed by combining a minimum slack time rule and shortest processing time rule with a push-back procedure. The results of a numerical experiment on the heuristic's performance are presented in comparison with the results of IBM ILOG CPLEX. The proposed algorithm was applied to an actual case of production planning at Woongjin Chemical, a leading manufacturer of filter products in South Korea. The seven-month execution of our algorithm led to a 24.5% decrease in the company's inventory level, thus demonstrating its practicality and effectiveness.

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