Development of a Dynamic Programming Model for Optimizing Production Planning. (Review Completed - Accepted)
Production planning is the backbone of any manufacturing operation, and its main objective is to determine the quantity of products to be produced and inventory level to be carried from one period to the other, with the objective of minimizing the total costs of production and the annual inventory, while at the same time meeting the customers’ demand. A mathematical model was developed for a multi-product problem using Dynamic Programming approach and the solution procedure proposed by Wagner and Whitin was adopted. The model is very useful in solving a problem with multi-stage problem, a particular situation in which there is appreciable variation in average periodic demand and availability of raw materials among the different periods. It also stipulates the minimum quantities of the product to produce per period and the corresponding inventory levels such that total production cost is minimized over the planning periods
Keywords: Cost, Dynamic, Inventory., Minimum, Model, Production