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Multi-facilities tactical planning robustness with experimental design

This paper addresses the problem of tactical planning robustness of a three-level multi-facilities supply chain. Robustness to uncontrollable factors such as demand is an increasing concern because of the key role played in supply chain planning. This study aims at proposing an approach based on an experimental design and the use of signal to noise ratio as developed by Taguchi when establishing tactical plans. A linear programming (LP) model, such as those used in advanced planning systems, is developed to solve tactical planning concerns. By adjusting policy parameters, such as overtime, inventory level costs, and so on, a decision-maker can determine an optimal tactical plan while taking into account the robustness to uncertain demand. This approach enhances the compromise between minimised costs and improved robustness. This methodology has been applied to a case study of an aggregate plan based on a Vallourec steel tube company.