Production Planning and Sequencing Optimization at Woongjin Chemical  

Oleh:

Sung, Shin Woong ; Jang, Young Jae ; Lee, Dong Seop

Jenis: Article from Proceeding
Dalam koleksi: The 14th Asia Pacific Industrial Engineering and Management Systems Conference (APIEMS), 3-6 December 2013 Cebu, Philippines, page 1-8.
Topik: production planning; sequencing; lot sizing; scheduling; application; case study
Fulltext: 1248.pdf (563.93KB)

Isi artikel

This paper focuses on an actual case study that improves the on-time delivery rate and the inventory level. The solution approach, an optimization model for production planning and sequencing, is presented. In March 2012, Woongjin Chemical, a leading company of filter products and synthetic fibers in Korea, initiated a project on its Micro Filter business to increase the customer satisfaction and to reduce the production inefficiency. The company’s inventory levels were high, but the on-time delivery rate was low. To figure out the problem, we analyzed the process of production planning. To solve the problem, we developed an optimization model for the production planning and lot sequencing. We formulated a mixed integer linear programming and a heuristic model that applies the concept of traveling salesman problem with greedy algorithm. After a one-month test period, we implemented the final model along with redesigned business process, from data acquisition to user interface. As a result, the optimized decision making process of production planning and sequencing has been successfully executed enterprise-wide. For 8 months of execution, from June 2012 to January 2013, it helped Woongjin Chemical Micro Filter business to increase the on-time delivery rate by 3.2%, to reduce the inventory level of finished product by 24.5%, and to reduce the lead time by 23.3%.

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