• ISSN: 2010-0248 (Print)
    • Abbreviated Title: Int. J. Innov.  Manag. Technol.
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    • DOI: 10.18178/IJIMT
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HOME > Archive > 2023 > Volume 14 Number 4 (Nov. 2023) >
IJIMT 2023 Vol.14(4): 148-152
doi: 10.18178/ijimt.2023.14.4.952

A Model for Product Mix Planning Using Multi-objective Optimization Approach with Sensitivity Analysis

Monika Ciesielkiewicz1,*, Claire F. Bonilla2, and Carlos Olave-Lopez-de-Ayala3
1. School of Education, Computense Unversity of Madrid, Spain
2. Department of Computer Science, UDIMA—Universidad a Distancia de Madrid, Spain
3. School of Ecomomics, University of Valencia, Spain
Email: monikacies@gmail.com(M.C.); clairefbonilla@gmail.com(C.F.B.); carolode@alumni.uv.es(C.O.-L.A.)
*Corresponding author

Abstract—The paper proposes a model for allocation problems in business organizations considering multiple objectives. It concerns the distribution of resources among options in order to achieve the best value for the goals of the business. Thus, the paper develops a model for a product mix plan using the multi-objective optimization (MOO) approach. The objectives set by the paper are to minimize production costs and waste. The inclusion of the production wastes was motivated by United Nations Sustainable Development Goal number 13, which states, “Take immediate action to combat climate change and its impacts.” The developed model was then tested in a manufacturing company and resulted in Pareto-optimal solutions. Such solutions determine the quantity of products to be produced in several production facilities at a particular period of time and will be set as the product mix plan of the case study company. A sensitivity analysis was also performed by varying the weights of the objective functions, which resulted in different decisions about the best product mix plan. It was found that solution 2 is more stable than solution 1. Moreover, the paper also analyzed the permissible ranges for the coefficients of the decision variables and the coefficients for the constraints, where the optimal solutions remain unchanged. The proposed mathematical model thus demonstrates its viability and usefulness in achieving the company's aims.

Index Terms—Multi objective optimization (MOO), pareto optimal, sustainable development goals (SDGs), product mix planning, sensitivity analysis

Ma. Teodora E. Gutierrez is with Polytechnic University of the Philippines, Manila, Philippines. Ma. Teodora E. Gutierrez is also with Technological Institute of the Philippines, Quezon City, Philippines.
Philip P. Ermita is with Polytechnic University of the Philippines, Manila, Philippines.
*Correspondence: dhorieg@gmail.com (M.T.E.G.)

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Cite: Ma. Teodora E. Gutierrez* and Philip P. Ermita, "A Model for Product Mix Planning Using Multi-objective Optimization Approach with Sensitivity Analysis," International Journal of Innovation, Management and Technology vol. 14, no. 4, pp. 148-152, 2023.

Copyright © 2023 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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