A Mixed Integer Linear Goal Programming Model for Optimizing Multiple Constrained Resources Product-Mix Problem Under the Theory of Constraints

Abstract

Finding optimum product-mix for production systems is an important decision. Several researchers have developed algorithms to determine the product-mix under the Theory of Constraints (TOC). Literature reveals failure of the traditional TOC heuristic in determining product-mix when multiple constrained resources exist. In this paper, a Mixed Integer Linear Goal Programming (MILGP) model is proposed to deal with product-mix problem when multiple constrained resources exist. The proposed MILGP model emphasizes utilization of all bottlenecks as the primary goal and maximization of throughput as the secondary goal. The proposed model is experimented on problems cited in literature and the randomly generated ones, and the optimum results are reported by the proposed model