A Study of Production Decisions in Order-Based Companies Based on Service Reliability

A mathematical model of integrated production planning with the objective of profit maximisation is developed to improve customer satisfaction by satisfying certain service reliability, helping order-based enterprises to solve the problem of difficulties in making production decisions in the face of fluctuating demand. Firstly, the concept of service reliability is proposed to indicate the probability that the quantity of products supplied by an enterprise can meet the quantity of products ordered by customers; then the integrated production planning mathematical model is constructed with the objective of maximising profit by considering constraints such as service reliability, staff, production capacity, overtime hours and orders, and is solved using the EXCEL planning solution tool. Finally, Professor Huang's food processing enterprise was selected for an example application to verify the feasibility of the model. The results show that the solution using this model can obtain production decision results that satisfy a certain degree of service reliability.