Sustainable Short-Term Production Planning Optimization uri icon


  • This study proposes a framework for short-term production planning of a Portuguese company operating as a tier 2 supplier in the automotive sector. The framework is intended to support the decision-making process regarding a single progressive hydraulic press, which is used to manufacture cold-stamped parts for exhaust systems. The framework consists of two sequential levels: (1) a Mixed-Integer Linear Programming (MILP) model to determine the optimal production quantities per week while minimizing the total cost; (2) a dynamic production sequencing rule for scheduling operations on the hydraulic press. The two levels are combined and implemented in Excel, where the MILP model is solved using the Solver add-in, and the second level uses the optimal production quantities as inputs to determine the production sequence using a dynamic priority rule. To validate the framework, a proposed optimal plan was compared to a real plan executed by the company, and it was found that the framework could save up to 22.1% of the total cost observed in reality while still satisfying demand. To address uncertainties, the framework requires a rolling weekly planning horizon.
  • This work has been supported by Foundation for Science and Technology (FCT, Portugal) for financial support through national funds FCT/MCTES (PIDDAC) to CeDRI (UIDB/05757/2020 and UIDP/05757/2020) and SusTEC (LA/P/0007/2021).

publication date

  • October 2023