Mohamed k. Omar, Siew C. Teo

[email protected] [email protected]

Yasothei a/p Suppiah

[email protected]

Multimedia University-Faculty of Engineering and Technology Melaka Campus.

Jalan Ayer Keroh Lama, 75450 Melaka-Malaysia

Abstract

Owing to the increase in demand of low volume specialized chemical compounds

such as in the manufacturing of resins; there is a trend in the chemical process industry to

operate in batches rather than using a continuous flow productio n operation.

This trend parallels the shift to small lot size in discrete-parts manufacturing. The

primary advantage of batch chemical plants is the ability of multiple products to share the

same process resources. Emphasis on planning and scheduling is greatly increased for

batch chemical plants in order to make efficient use of this capability.

This paper reports on an attempt to develop a hierarchical framework, which

comprises of two level hierarchy decision structures for paint resins manufacturing firm.

The proposed hierarchical production-planning framework is comprised of

aggregate and disaggregate module. The aggregate-planning module was formulated as

an integer linear programming model, provides aggregate production, workforce,

backorder and inventory. A master production schedule is developed by disaggregation

the first hierarchy decisions through a weighted integer goal-programming model

This paper presents a computational illustrative example which shows that the

approach is computational feasible and provides an enhancement to management

decisions in terms of cost savings.