Product mix optimization on multi-constraint production planning-a Fuzzy Mixed Integer Linear Goal Programming (FMILGP) approach: A single case study

Abstract

Creating effective and efficient production planning becomes one of the most intriguing efforts for most of the Indonesian enterprises. This study introduces an optimization model of product mix to solve the production planning problems, by considering certain multi-constraint: limited existing resources, objectives to be achieved, and fuzzy characteristics of demand and production costs. By applying Fuzzy Mixed Integer Linear Goal Programming, this study tries to determine the optimal solutions of product mix. The study consists of several steps: capacity constraint resource analysis, formulation of the optimization models, determines the products mix and the multi-criteria objective value. The proposed product mix model is then validated by conducting a preliminary study to one enterprise. The preliminary study showed that the proposed model is able to provide an increase of multi-criteria objective value by 4.81% compared to the existing conditions.