Abstract
Production planning, which allows the producer to manage all production activities efficiently, is a major issue in manufacturing/processing industries. A good plan helps the company lower down its expenses and/or increase the profit. This study considers a medium-term production planning problem in which a producer receives several periodic orders from multiple retailers at the beginning of planning horizon. Due to the capacity limit of the production system, the producer needs to reject some orders based on profit maximization principle. The producer faces two questions: 1) which order the producer should accept, and 2) when the products need to be allocated to the retailers. To solve these problems, we propose an integer programming model. Furthermore, due to the demand uncertainty, Fuzzy Set Theory is applied to construct a Fuzzy Chance-Constrained Production Mix Model so that the producer’s risk attitude and preference can be adopted to address uncertainty issue. Numerical examples for deterministic and uncertain cases are provided for illustration. The results of this study can help producers deal with a more realistic environment.