Stochastic programming models in the production planning of furniture companies

Douglas Alem*, Reinaldo Morabito

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This paper addresses a production planning problem that arises in small-scale furniture companies, where the demands and setup times of bottleneck operations are random variables that can be approximated by a discrete and finite number of scenarios that are weighted by their corresponding probabilities of occurrence. The problem is modeled under multiple scenarios via two-stage stochastic programming with recourse. To control the variability of the second-stage costs, we propose a restricted recourse model that generates a set of solutions that are less sensitive to the scenario changes because the variability is limited to a given tolerance. Numerical experiences indicate that, in some situations, risk-averse solutions with good service levels are not excessively expensive to obtain.

Translated title of the contributionStochastic programming models in the production planning of furniture companies
Original languagePortuguese
Pages (from-to)657-677
Number of pages21
JournalGestao e Producao
Volume25
Issue number3
DOIs
Publication statusPublished - 2015

Keywords

  • furniture industry
  • production planning
  • restricted recourse
  • risk-aversion
  • stochastic programming

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