Integration Aggregate Production Planning and Maintenance Using Mixed
Integer Linear Programming
M. Erfanian1, M. Pirayesh 2
1,2
Industrial Engineering Department, Faculty of Engineering, Ferdowsi University of Mashhad, Mashhad, Iran
(ma.erfanianeyditousi@um.ac.ir, pirayesh@um.ac.ir)
Abstract - Aggregate production planning is a planning
process and control of entire production activities to meet
the variable demands of aggregate products. The goal is to
determine the production and inventory levels to minimize
the total production cost with limited resources of workforce
and equipment. On the other hand, the aim of maintenance
planning is to improve the efficiency of equipment to satisfy
the production requirements. In this paper an integrated
model of aggregate production planning and maintenance
planning is developed to determine the optimal plan of
production and preventive maintenance in each period. To
exhibit the performance of the introduced model, a case
study is conducted in a pharmaceutical company and its
results are expressed.
Keywords – Aggregate production planning, Emergency
maintenance, Preventive maintenance
I. INTRODUCTION
The aim of aggregate product planning is the best use
of workforce and production equipment. The word
aggregate means that a planning in a specific level is
integrated and the entire products that use the same
resources and equipment are considered as a single
product. In the aggregate production planning the
production and inventory levels, is determined in a
midterm planning horizon from 3 to 8 months [1].
One of the assumptions that is present in the
traditional aggregate production planning models is that
the production system is always available and it works
with maximum capacity. Nowadays considering the short
products’ shelf life, most of the mass production systems
have been converted into multi-product production
systems. Even the increase of product variety leads to the
complexity of the production equipment. The equipment
of such systems in order to avail profit should always be
located in the maximum operation power. For this reason,
when a defect or halt occurs in them, it will intensely
influence the exploitation of production system. Thus,
having an efficient maintenance planning is an essential
affair for production companies. Both maintenance and
production planning occupy the machine available
capacity, so the relationship between maintenance and
production is established through machine capacity.
In the operation, three kinds of general policy exists
for the maintenance planning including the emergency
maintenance planning, preventive maintenance planning,
and condition-based monitoring. The accomplishment of
each of the mentioned maintenance plans needs to spend
some time and capacity of production system. In this
article the emergency and preventive maintenance
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planning are considered and the kind of maintenance
policy is time based.
In the introduced model in this article, the failures
and system capacity reduction rate are directly entered to
the production planning model and the costs of preventive
maintenance planning are correlated with the production
costs. The cost of preventive maintenance planning is a
function of different factors, viz. the lost production
opportunity, the direct cost of preventive maintenance
planning and tools and as well, the unemployment cost of
production workforce during the time of preventive
planning. On the other hand, the cost of conduction of
emergency maintenance planning can be a function of
different factors. Such as percentage of product
production wastes during production due to system failure
and also the direct production costs and tools and even the
unemployment cost of the production forces during the
maintenance time.
In this article, an integrated production and
maintenance planning model is introduced to minimize
the production system costs and reach an optimal solution
for balancing the production and maintenance planning in
the midterm level.
The issue of production and maintenance planning
integration in the production systems due to importance
has been accounted as a special status in the researches.
Budai et al. [2] carried out a complete review of these
issues and classified them into 4 categories including
conceptual models, economic production quantity,
production system models with the buffer inventory and
integrated models. The introduced model in this article
nestles in the integrated group models, and for this reason
only this group of articles has been assessed. Schmidt [3]
conducted a complete review on the integrated models.
Weinstein and Chung [4] introduced a three section model
to assess the maintenance policy of an organization
wherein an aggregate production planning model by a
linear programming model created in the first stage, and
in the second stage. A master production scheduling for
the minimization of the weighted deviation from the aims
of first stage was prepared. Even in the third stage the
need of working centers via capacity planning using the
specification of resources for depiction of equipment
failure during the planning period has been determined.
Aghezzaf et al. [5] analyzed a production system that was
exposed to the random failures. In this article, it was
proposed that the actions carried out for the maintenance
planning on the production system leads to the reduction
of the production system capacity. Aghezzaf and Najib [6]
introduced a production planning and preventive
maintenance integration model. In this model they have
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converted a production system to a few independent
production lines wherein each of the lines are susceptible
to failures and that leads to the loss of a production
capacity during the maintenance period. For the states in
which the preventive maintenance planning is conducted
in periodical form, they presented a model of non-linear
mixed integer and solved it by the heuristic methods.
Besides for the preventive maintenance planning that is
conducted in the non-periodical form also introduced a
mixed linear integer model. Zhao and Wang [7]
introduced a production planning and maintenance
planning integrated model with an assumption that the
production capacity will be lost due to preventive
maintenance planning or emergency maintenance
planning. They also considered the reliability of
machines’ and used an iterative solving approach to find a
solution for their non-linear model. Yildirim and Nezami
[8] presented a production planning and maintenance
planning model with this assumption that the processing
periods of products is influenced by the system functional
conditions. Gehan, et al. [9] presented another integrated
model for production and maintenance planning. In this
article, it was assumed that the production systems
confronted to wear out due to effect of production and
over time and this wear out could lead to the probability
increase of the failure during the production period.
In the earlier articles, the production planning is
discussed without consideration of the entire aspects
related to planning. For example, in these articles the
discussion of workforce resources planning, and the
increase and reduction of costs in the level of workforce
resources are considered as one of the most important
production resources. In addition, the shortage cost of
products and also the production capacity were calculated
during the regular production periods and overtime
without separation. In these articles, the effect of affairs
related to maintenance planning on the production system
costs is not specified; and no correlation is established
between them viz. the research gaps that are observed in
the previous articles are usually the conduction of
maintenance planning for a machine or a system
mentioned in these articles. But as we know each system
consists of different components that these components
are different in terms of nature and function conditions.
For example, two different sections of a system have
different failure rate, variable preventive and emergency
maintenance planning costs and different maintenance
and planning conduction period that should be considered
in the modelling. In this article, all the different failure
conditions for a system is observed as an independent
system and the decision-making is carried out separately
for each one of them.
II. MATHEMATICAL MODELLING
The aim of the introduced model in this article is
introducing an integrated model for the production
planning and maintenance planning. Each of the
production machineries are exposed to different failures
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wherein the occurrence rate of these failures follows an
exponential distribution with specified mean.
The decisions related to planning include decision
about the production level of each product in the regular
and overtime, the shortage level of each product in each
period as well reduction or increase rate at the workforce
level of production section. On the other hand, the
decisions related to the maintenance planning are those
for all of the defined failures on each system to decide
which kind of policy is used. In fact, it responds to this
query that which of the failures is in preventive form and
which one should be implemented in an emergency form.
The introduced model in this article is a multi-period
and multi-product model. The shortage in this model is
permissible and it is from the backorder type. The
planning horizon is considered in the monthly manner,
and in each month it could have different working days
compared to the other months. The time of preventive
maintenance planning is at the beginning of each planning
period and the time of corrective or emergency
maintenance planning is immediately after occurrence of
each failure.
Among the important assumptions in this model is
that the quality of preventive maintenance planning
implementation will be relatively higher than the
emergency maintenance planning. In this model it is
assumed that if the preventive maintenance planning in
the initiation of a period is not conducted for one of the
failure factors, definitely the related failure during the
same period will occur with the normal occurrence rate
and the average number of occurrences of that failure is
achieved according to the exponential distribution in the
duration of each period. The implementation of
preventive maintenance planning for each of the failure
causes that the related failure occurrence rate reduces to
zero for a specified time period. After the passage of that
time period again the failure occurrence rate returns back
to the previous states and the average number of the
failure occurrences in this status is considered the same
preliminary occurrence however it will be calculated in
the reduced time period.
Variables and parameters:
: The regular time unit production cost for product i
($/unit)
: The overtime unit production cost for product i
($/unit)
: The unit inventory cost to hold product i at the end of
each period for one period ($/unit)
: The backorder cost per unit of the product i in period
t ($/unit)
: The labour cost in period t ($/man-hour)
ℎ : Cost to hire one worker in period t ($/man-hour)
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: Cost to lay off one worker in period t ($/man-hour)
: Number of working days in period t
: The failure occurrence rate of type j on the machine
m (the number of events /day)
: The binary variable; if the preventive maintenance
type j occurred in period t on machine m the value is
1 and otherwise it will be 0.
,

: The demand of product i in period t (units)

ℎ
: The labour time for product i (man-hour/unit)

: The machine time for product i (machine-hour/unit)
, ,
: The fraction of regular-time workforce available for
use in overtime in period t
1 (1)
: The maximum available workforce in period t , ,
(man-hour)
s.t
: The maximum machine capacity m in period t
(machine-hour) , , ; ∀ , (2)

: The preventive maintenance cost of type j on the ; ∀ (3)

machine m in time period t (currency)
; ∀ (4)
: The emergency maintenance cost of type j on the
machine m in time period t (currency) ; ∀ (5)

: The binary variable; if the failure type j has an

occurrence possibility for machine m the value is 1 ; ∀ (6)
and otherwise the value will be 0.

: The duration of the preventive maintenance of type j

on machine m in time period t (machine – hour)

: The duration of the emergency maintenance of type

j on machine m in time period t (machine – hour)
: The number of days wherein the failure rate of type j
on machine m reduces to 0 after the preventive
maintenance.
: The quantity of product i produced during regular
time in period t (units)
: The quantity of product i produced during overtime in
period t (units)
: The inventory of product i at the end of period t
(units)
: The backorder level the product i in period t (units)
: The workforce level in period t (man- days)
: The number of workers hired in period t (man- days)
: The number of workers fired in period t (man- days)
1 ; ∀ , (7)
, , , , , , 0 ; 1,2, … , ,
1,2, … ,
0,1 ;
1,2, … , , 1,2, … , , (8)
1,2, … ,
In the expression 1 that relates to objective function
of this model, the total production and maintenance
planning costs minimized. The second and third
expressions of the objective function depict the total
workforce cost and total costs spent for increasing or
reducing the workforce level respectively. In the fourth
and fifth expressions, respectively the cost related to the
conduct or conduction lack of the preventive maintenance
planning is calculated. The constraint 2 states an
inventory balance equation of each product in each
planning period. In the constraint 3 balance equation of
workforce level is stated in each of the periods. In the

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constraint 4, the maximum workforce that can be adopted
in each course is controlled. The constraints 5 and 6 are
related to the maximum workforce capacity in each period
in the regular and overtime periods respectively. In the
constraint 7, the production machineries capacity is
considered, so that the total periods when the machine is
busy in the regular and also in overtime periods for
producing the related product, and besides the time spent
for emergency or preventive maintenance planning in a
period should not be more than the maximum capacity of
existing machineries in that period. The constraint 8
shows the nature of the decision variables.
III. NUMERICAL EXAMPLE
For showing the applicability of the introduced
model, the information of Samen Pharmaceutical
Company was used. This company produces 70 types of
different products in 5 independent production lines. In
the current case study, the planning for 5 product families
among the mentioned products is considered including the
bag serums with volumes of 50, 100, 500 cc, peritoneal
dialysis and bulky products, in a 6-months planning
horizon. The numerical example is solved by GAMS and
the computational time is less than 5 Sec.
The aim of introducing an integrated model is
reduction of the total production system costs including
the production cost and maintenance cost. In Table 1 the
results related to objective function values are expressed
in both integrated and non-integrated states.
TABLE I
Objective function values in the integrated and non-integrated conditions
Percent increase cost in relation to
Modelling type
integrated model
Current condition 3%
The entire failures are
implemented in emergency 12%
form
The entire failures are
implemented in preventive
4%
form
As it is specified in Table 1, the total system costs in
the non-integrated model are more than the integrated
model. As a result, the use of the integrated model causes
reduction of costs. Moreover, the introduced model leads
to reduction rate of 3% in the system costs compared to
the current condition.
IV. CONCLUSION
In this article, a mixed integer linear programming
model for the integration of aggregate production
planning and preventive maintenance planning was
introduced. In this model, we concluded that the
production planning and maintenance planning should be
considered in an integrated system. Likewise, the present
case study on Samen Pharmaceutical Company revealed
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that the adoption of the proposed model in this study led
to a reduction in the production system costs. The
introduced model here only involves an integration within
the environment of the production factory; this is while it
can be extended on multi-level issues related to the supply
chain.
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