A two stage solution procedure for production planning system with advance demand information

Nobuyuki Ueno*, Kiyotaka Kadomoto, Takashi Hasuike, Koji Okuhara

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


We model for 'Naiji System' which is a unique corporation technique between a manufacturer and suppliers in Japan. We propose a two stage solution procedure for a production planning problem with advance demand information, which is called 'Naiji'. Under demand uncertainty, this model is formulated as a nonlinear stochastic programming problem which minimizes the sum of production cost and inventory holding cost subject to a probabilistic constraint and some linear production constraints. By the convexity and the special structure of correlation matrix in the problem where inventory for different periods is not independent, we propose a solution procedure with two stages which are named Mass Customization Production Planning & Management System (MCPS) and Variable Mesh Neighborhood Search (VMNS) based on meta-heuristics. It is shown that the proposed solution procedure is available to get a near optimal solution efficiently and practical for making a good master production schedule in the suppliers.

Original languageEnglish
Pages (from-to)633-646
Number of pages14
JournalJournal of Advanced Mechanical Design, Systems and Manufacturing
Issue number5
Publication statusPublished - 2012
Externally publishedYes


  • Advance demand information
  • Corporation
  • Correlation matrix
  • Inventory
  • Meta-heuristics
  • Production planning
  • Stochastic programming

ASJC Scopus subject areas

  • Mechanical Engineering
  • Industrial and Manufacturing Engineering


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