A Stochastic Model for the Multi-site Aggregate Production Planning Problems

S.C.H. Leung, Y. Wu, and K.K. Lai (PRC)


Production planning, stochastic programming, logistics


This paper addresses the problem of aggregate production planning (APP) for a multinational lingerie company in Hong Kong. The multi-site production planning problem considers the production loading plans among manufacturing factories subject to certain restrictions, such as production import/export quotas imposed by regulatory requirements of different nations, the use of manufacturing factories/locations with regard to customers' preferences, as well as production capacity, workforce level, storage space and resource conditions of the factories. In this study, a stochastic model is developed to solve the production planning problems under uncertain environment. Numerical results demonstrate the robustness and effectiveness of the developed model.

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