The order fulfillment planning problem considering multi-site order allocation and single-site shop floor scheduling

The order fulfillment planning process in the thin film transistor–liquid crystal display panel industry is analyzed in this study. A two-phase order fulfillment planning structure is proposed, including the multi-site order allocation among module factories and single-site shop floor scheduling in each factory. In the first phase, the order allocation problem is solved using a mathematical programming model considering practical characteristics, including product structures, customer preferences, alternative bill-of-material, and production constraints. In the second phase, a constraint-based simulation scheduling algorithm is developed to address the scheduling problem in each module factory for determining the ideal order release time. Since production planning and scheduling are dealt with different time scales, the major challenge for the integration lies in the large problem size of the optimization model and becomes intractable. Most of the time bucket-based planning methods in the past literature simplify their scheduling models, but in this paper the detailed shop floor operations and processing behaviors are considered, such as changeover time, processing sequence of orders, and machine characteristics. Finally, a practical case in Taiwan will be employed to testify the feasibility of the proposed order fulfillment planning process; meanwhile, through the analysis of experiments, the adaptability and comparison of different planning approaches in an environment of various market demands are discussed.