Aggregate production planning with learning effect and uncertain demand

Purpose – The purpose of this paper is to study the impact of learning effect and demand uncertainty on aggregate production planning (APP), provide practitioners with some important managerial implications for improving production planning and productivity. Design/methodology/approach – Motivated by the background of one labour-intensive manufacturing firm – a mosquito expellant factory – an APP model considering workforce learning effect and demand uncertainty is established. Numerical example and comparison with other two models without considering learning and uncertainty of demand are conducted. Findings – The result shows that taking into account the uncertain demand and learning effect can reduce total production cost and increase flexibility of APP. Practical implications – Managerial implications are provided for practitioners with four propositions on improving workforce learning effect, i.e. emphasizing employee training, combing individual and organizational learning and reduction of forgettin...

[1]  Terry R. Rakes,et al.  Aggregate production planning using chance-constrained goal programming , 1984 .

[2]  Mohammad Ali Soukhakian,et al.  A hybrid fuzzy goal programming approach with different goal priorities to aggregate production planning , 2009, Comput. Ind. Eng..

[3]  O. S. Silva Filho,et al.  An aggregate production planning model with demand under uncertainty , 1999 .

[4]  Mohamad Y. Jaber,et al.  A numerical comparison of three potential learning and forgetting models , 2004 .

[5]  D A Nembhard,et al.  Heuristic approach for assigning workers to tasks based on individual learning rates , 2001 .

[6]  Richard Y. K. Fung,et al.  Multiproduct aggregate production planning with fuzzy demands and fuzzy capacities , 2003, IEEE Trans. Syst. Man Cybern. Part A.

[7]  Noah Gans,et al.  Introduction to the Special Issue on Behavioral Operations , 2008, Manuf. Serv. Oper. Manag..

[8]  Christoph H. Glock,et al.  Single sourcing versus dual sourcing under conditions of learning , 2012, Comput. Ind. Eng..

[9]  Howard E. Thompson,et al.  The Effect of Worker Productivity on Production Smoothing , 1968 .

[10]  Suresh P. Sethi,et al.  A Dynamic Lot Sizing Model with Learning in Setups , 1990, Oper. Res..

[11]  T. P. Wright,et al.  Factors affecting the cost of airplanes , 1936 .

[12]  Mohammadreza Sadeghi,et al.  A fuzzy grey goal programming approach for aggregate production planning , 2013 .

[13]  Christoph H. Glock,et al.  A multi-stage production-inventory model with learning and forgetting effects, rework and scrap , 2013, Comput. Ind. Eng..

[14]  Christoph H. Glock,et al.  A learning curve for tasks with cognitive and motor elements , 2013, Comput. Ind. Eng..

[15]  Armand Baboli,et al.  Production , Manufacturing and Logistics A stochastic aggregate production planning model in a green supply chain : con ‐ sidering flexible lead times , nonlinear purchase and shortage cost functions , 2013 .

[16]  Joseph B. Mazzola,et al.  Multiproduct production planning in the presence of work-force learning , 1998, Eur. J. Oper. Res..

[17]  S. Goyal,et al.  Economic production quantity model for items with imperfect quality subject to learning effects , 2008 .

[18]  Joseph B. Mazzola,et al.  The Stochastic Learning Curve: Optimal Production in the Presence of Learning-Curve Uncertainty , 1997, Oper. Res..

[19]  T. C. Edwin Cheng,et al.  Scheduling with a position-weighted learning effect based on sum-of-logarithm-processing-times and job position , 2013, Inf. Sci..

[20]  Gary R. Reeves,et al.  Product-Mix Models When Learning Effects are Present , 1981 .

[21]  Christoph H. Glock,et al.  Learning effects and the phenomenon of moving bottlenecks in a two-stage production system , 2013 .

[22]  Tien-Fu Liang,et al.  Application of fuzzy multi-objective linear programming to aggregate production planning , 2004, Comput. Ind. Eng..

[23]  Flávio Sanson Fogliatto,et al.  Learning curve modelling of work assignment in mass customized assembly lines , 2007 .

[24]  E. C. Keachie,et al.  Effects of Learning on Optimal Lot Size , 1966 .

[25]  Elliot Bendoly,et al.  Behavior in operations management: Assessing recent findings and revisiting old assumptions , 2006 .

[26]  Donya Rahmani,et al.  A robust optimization model for multi-product two-stage capacitated production planning under uncertainty , 2013 .

[27]  Larry R. Dolinsky,et al.  Adjusting replenishment orders to reflect learning in a material requirements planning environment , 1990 .

[28]  R. Ebert.  Aggregate Planning with Learning Curve Productivity , 1976 .

[29]  A. Alamri,et al.  The effects of learning and forgetting on the optimal production lot size for deteriorating items with time varying demand and deterioration rates , 2007 .

[30]  M. Palmer Terrell,et al.  Aggregate planning models incorporating productivity—an overview , 1982 .

[31]  Rainer Kolisch,et al.  Work assignment to and qualification of multi-skilled human resources under knowledge depreciation and company skill level targets , 2010 .

[32]  Mohamad Y. Jaber,et al.  The effect of human factors on the performance of a two level supply chain , 2012 .

[33]  W. Zangwill,et al.  Toward a Theory of Continuous Improvement and the Learning Curve , 1998 .

[34]  Mohamad Y. Jaber,et al.  An integrated supply chain model with errors in quality inspection and learning in production , 2014 .

[35]  Yannis Zorgios,et al.  A learning curve explanatory theory for team learning valuation , 2009 .

[36]  C. C. Holt,et al.  A Linear Decision Rule for Production and Employment Scheduling , 1955 .

[37]  Mir-Bahador Aryanezhad,et al.  A multi-objective robust optimization model for multi-product multi-site aggregate production planning in a supply chain under uncertainty , 2011 .

[38]  Timothy L. Smunt.  Rough cut capacity planning in a learning environment , 1996 .

[39]  Stephen C. H. Leung *,et al.  A robust optimization model for stochastic aggregate production planning , 2004 .

[40]  Mohamad Y. Jaber,et al.  Inventory models for imperfect quality items with shortages and learning in inspection , 2012 .

[41]  M. Jaber,et al.  Vendor managed inventory (VMI) with consignment considering learning and forgetting effects , 2012 .

[42]  Mohamad Y. Jaber,et al.  An economic production and remanufacturing model with learning effects , 2011 .

[43]  Christoph H. Glock,et al.  The effect of worker learning and forgetting on storage reassignment decisions in order picking systems , 2013, Comput. Ind. Eng..