"Integrated Planning of Orders with Priorities and Due Dates in the Automotive Industry: A Proposition of a mixed-integer linear programming approach"
Résumé
Automobile manufacturers plan the production of their orders on different planning horizons; the production
plan has to be coordinated with supply, inbound and outbound logistics, typically done sequentially. Car manufacturers
have tried to establish a horizontal integration of these processes in recent years. Horizontal integration
coordinates all production, inventory, and distribution or routing decisions in supply chains. This document proposes
the resolution of the Integrated Production Planning problem using a mathematical optimisation model.
The model enables planning for the production of orders with priorities and due dates, inbound and outbound
logistics, and emergency shipment of critical components on a short-term horizon. We introduce a numerical
example demonstrating how the model solves the automotive production planning problem. The production
plan can be elaborated on and coordinated with the planned inbound logistics and outbound distribution in the
automotive supply chain. The analysis of the numerical example shows cost savings of 33% provided by the
integration of the processes.