Production Planning for Animal Food Industry under Demand Uncertainty

This research investigates the distribution of food
demand for animal food and the optimum amount of that food
production at minimum cost. The data consist of customer purchase
orders for the food of laying hens, price of food for laying hens, cost
per unit for the food inventory, cost related to food of laying hens in
which the food is out of stock, such as fine, overtime, urgent
purchase for material. They were collected from January, 1990 to
December, 2013 from a factory in Nakhonratchasima province. The
collected data are analyzed in order to explore the distribution of the
monthly food demand for the laying hens and to see the rate of
inventory per unit. The results are used in a stochastic linear
programming model for aggregate planning in which the optimum
production or minimum cost could be obtained. Programming
algorithms in MATLAB and tools in Linprog software are used to get
the solution. The distribution of the food demand for laying hens and
the random numbers are used in the model. The study shows that the
distribution of monthly food demand for laying has a normal
distribution, the monthly average amount (unit: 30 kg) of production
from January to December. The minimum total cost average for 12
months is Baht 62,329,181.77. Therefore, the production planning
can reduce the cost by 14.64% from real cost.

• Pirom Thangchitpianpol
• Suttipong Jumroonrut

• Animal food
• Stochastic linear programming
• Production planning
• Demand Uncertainty.

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