Modeling and optimization of multi-layer aggregate production planning

Aggregate production planning has attracted the attention of researchers for quite a long time now; and the continued researches depict the significance and scope for improvement in this arena. Here, a multi-product, multi-level and multi-period model has been formulated to identify the required aggregate plan for meeting the forecast demand, by regulating production rates, inventory, workforce, various production costs, and other controllable variables. Several new contributing factors, such as costs related to material handling, raw material inventory and worker training have been included in the objective function and constraint equations to make the model more realistic. A case study has been presented for a cosmetics and toiletries manufacturer in Bangladesh. Eventually, the problem has been solved using Genetic Algorithm and Particle Swarm Optimization approach. The solution illustrates that the model can be applied in a real world scenario to enhance productivity and profitability.