Vol 20, No 1 (2016) > MJT Intl Meeting on Collaborative Technologies >

Multi-Project Scheduling Cost Optimization in a Machine Manufacturer Engineer-to-Order

Farizal Farizal 1 , Amar Rachman 1 , Tifani Tandean 1 , Sumarsono Sudarto 2 , Katsuhiko Takahashi 2

Affiliations:

  1. Departement of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Depok 16424, Indonesia
  2. Departement of System Cybernetics, Faculty of Engineering, Hiroshima University, Hiroshima 739-8527, Japan

 

Abstract: This  paper  discusses  the  utilization  of  mixed  integer  linear programming  (MILP)  model  to  optimize  cost for multiproject scheduling in a  machine  maker company. The  objective is to minimize total project’s penalty cost and labor cost. The model formulated shows how to achieve theobjective i.e. whether to use outsourcing or overtime to finish all projects.  The  model  of  multi-project  scheduling  was solved  by  Branch  &  Bound  algorithm coded  in  Lingo 14.0 software.  The  case  study  shows  that  if  a company  wants  to  minimize  lateness,  it  should  use  overtime instead of outsourcing, which minimize total lateness of projects by 144 days or 73.5%. Whereas, if a company wants to optimize cost, they  should  use  outsourcing  instead  of  overtime,  which  reduces total  cost  of  about  10,873,000  IDR or  28.5%. These results indicate that the model developed is applicable for optimizing multi-project scheduling.
Keywords: Branch & Bound, outsourcing cost, overtime cost, mixed integer linear programming, multi-project scheduling, penalty cost
Published at: Vol 20, No 1 (2016) pages: 13-18
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