# American Institute of Mathematical Sciences

January  2011, 7(1): 31-51. doi: 10.3934/jimo.2011.7.31

## A hybrid particle swarm optimization and tabu search algorithm for order planning problems of steel factories based on the Make-To-Stock and Make-To-Order management architecture

 1 School of Information Management and Engineering, Shanghai University of Finance and Economics, Shanghai 200433 2 School of Computer Science, Key Laboratory of Intelligent Information Processing, Fudan University, Shanghai 200433 3 Department of Industrial and Management Systems Engineering, PO Box 6070, West Virginia University, Morgantown, WV 26505, United States 4 Center for Applied Optimization, Department of Industrial and Systems Engineering, University of Florida, Gainesville, FL 32611, United States

Received  November 2009 Revised  September 2010 Published  January 2011

This paper presents the production planning management architecture for iron-steel manufacturing factories based on Make-To-Order (MTO) and Make-To-Stock (MTS) management ideas. Within this architecture, we discuss the procedures of order planning in details and construct a nonlinear integer programming model for the order planning problem. This model takes into account inventory matching and production planning simultaneously, and considers multiple objectives, such as the total cost of earliness/tardiness penalty, tardiness penalty in delivery time window, production, inventory matching and order cancelation penalty. In order to solve this nonlinear integer program, this paper designs a hybrid Particle Swarm Optimization (PSO) and Tabu Search (TS) algorithm, in which new heuristic rules to repair infeasible solutions are proposed, and then analyzes the parameter settings for PSO and the combined algorithm by simulations. This paper also compares the results of using PSO individually, TS individually, and the hybrid PSO/TS algorithm to solve the models with three different order quantities. Numerical results show that the hybrid PSO/TS algorithm provides better solutions while being computationally efficient.
Citation: Tao Zhang, Yue-Jie Zhang, Qipeng P. Zheng, P. M. Pardalos. A hybrid particle swarm optimization and tabu search algorithm for order planning problems of steel factories based on the Make-To-Stock and Make-To-Order management architecture. Journal of Industrial & Management Optimization, 2011, 7 (1) : 31-51. doi: 10.3934/jimo.2011.7.31
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##### References:
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