Optimization of economic production scheduling under sales and operations constraints in consumer goods industries.

A non-linear integer programming formulation is developed to solve a production scheduling problem at an industrial consumer goods producer. Its production runs are assigned to pre-set time slots economically sized for long setups and changeovers. The mathematical model applies to a mix of backlogged, or not, sales orders involving multi-product, multi-stage production with finite capacity, material, and storage constraints. It aims at maximizing various strategic objectives (direct margin, resource utilization, and customer service) over rolling workday horizons. Real-life scheduling problems are solved to illustrate the efficiency and applicability of the proposed optimization framework. The results indicate that minimizing stockouts over a 40-workday period during peak season leads to absolute two-digit service level improvements compared to man-made schedules. [ABSTRACT FROM AUTHOR]