Authors: Yohanes Kristianto
A product configuration needs to consider the stochastic of customer decision process. However, it is a challenge to tackle this issue in an Engineer-to-order (ETO) manufacturing. The objective of this article is to construct generic product and routing (GPR) for manufacturing the ETO products subject to the production time constraints and customization profitability. A combination of stochastic two-stage and bi-level programming in terms of Benders decomposition and KKT conditions are used in sequence to configure the product platforms as well as their optimum design parameters (DPs).
The performance of the system is measured in terms of total costs minimization and the required number of iterations. The results and analysis indicate that the proposed methodology is capable of reducing the both of solution times and the total costs at different stochastic processes. The results are analyzed further in the discussion and conclusion section.
Keywords: Benders decomposition, bi-level programming, KKT conditions, stochastic programming, two- stage programming