Two efficient heuristics to solve the integrated load distribution and production planning problem

This paper considers a multi-period production system where a set of machines are arranged in parallel. The machines are unreliable and the failure rate of machine depends on the load assigned to the machine. The expected production rate of the system is considered to be a non-monotonic function of its load. Because of the machine failure rate, the total production output depends on the combination of loads assigned to different machines. We consider the integration of load distribution decisions with production planning decision. The product demands are considered to be known in advance. The objective is to minimize the sum of holding costs, backorder costs, production costs, setup costs, capacity change costs and unused capacity costs while satisfying the demand over specified time horizon. The constraint is not to exceed available repair resources required to repair the machine breakdown. The paper develops two heuristics to solve the integrated load distribution and production planning problem. The first heuristic consists of a three-phase approach, while the second one is based on tabu search metaheuristic. The efficiency of the proposed heuristics is tested through the randomly generated problem instances.