Study On Production Planning Of Multi-plants And Multi Destination

In this thesis, by analyzing the supply chain of Owenscorning whose style is multiplants and multi destination, MTO，found that production planning is the key point in costsaving in the supply chain of this company. Taking advantage of dynamic programming,one optimized model of production planning was set up and was run to get the minimizedcost in one period of the supply chain. After the real scenario being brought in, we foundthat there was real effect in making production planning quickly and did helpedOwens-Corning on cost saving.Focus on the main product-Fiberglass, base on its character, confirmed that thefollowing variables, capacity of the plants, markets mapping, loading diversity, inventory,freight and timing are the matters which will affect the production planning. These entirevariables are reflected on the supply and demand balance and led to supply time anddemand timingComparing most of the optimization algorithm, considering the actual situation andthe products character of Owenscorning, finally, we decided to take use of dynamicprogramming to optimize the process. According to the complex of multi-plants andmulti-destination planning, computing program was introduced in. And with thecomputing calculation power’s help, we can simplify the process and optimize the totalcost.Since it is complex of the multi-plants and multi-destination production planning,when making the planning model, after the analysis, we set production cost and deliverycost as the main variable, ignore the storage cost. Following the dynamic programmingsteps, set the constraint condition, indicator function and best value function, consolidated the programming process and made the model.Considering the actual status of Owenscorning, admeasure policy was set and Clanguage was leveraged in, status and transferring policy was regulated, taken use ofcomputing program, we have applied the model for six months. We can find that after theapplication, we can shorten around37hours from order input to producing through theprocess. And the freight saved average about36%monthly. The direct cost which relatedto production planning was saved5%monthly basis.By using dynamic programming, Owenscorning is being benefited in improving theresources allocation, capital turn over, investment decision and also the revenue markup,all these will lead company win in the market, and better performance than the competitors.All these trigger management team make right decision with persuasive data supporting.