Material Requirements Planning Model Using Multi-Objective Mixed-Integer Linear Programming in a Bicycle Assembly Plant
Abstract
This research presents a material requirements planning (MRP) model using mixed-integer linear programming, with a multi-objective approach, applied to a theoretical bicycle assembly environment. This model is aimed at improving production scheduling in order to ensure demand fulfillment while reducing costs in the production system and maximizing the use of installed capacity. Accordingly, a methodology structured in three phases was adopted. The first consisted of a literature review and formulation of the case study, identifying operational and structural parameters; the second aimed to formulate a compromise-based mixed-integer linear programming model; and, finally, the model was implemented and evaluated in the AMPL IDE environment, using the CPLEX solver. The model proposed in this case study achieved all three key objectives: reducing total costs, minimizing the amount of unmet demand, and maximizing total production over the modeled time horizon (24 weeks). The balanced solution yielded a BALNOR objective value of 0.84; furthermore, 100% demand fulfillment was achieved, with a total production capacity of 4,568 units of finished product. Likewise, total costs were kept at 15,189,080 monetary units. These results validated the model's applicability as an important decision-support tool in this bicycle assembly context. It is concluded that combining MRP with multi-objective optimization techniques greatly improves system performance, enabling more robust, adaptable, and efficient solutions for organizations.
Keywords
Categories
Authors
References
Ballon-Echevarria, A.; Castillo-Tejada, J.; Hernandez-Ugarte, C. (2022). Inventory management model to increase the rotation of textile products through the S&OP process and material requirements planning (MRP) in textile companies in Lima. 2022 Congreso Internacional de Innovacion y Tendencias en Ingenieria, CONIITI Conference Proceedings. Colombia: IEEE, pp. 1-7, https://doi.org/10.1109/CONIITI57704.2022.9953682
Cano, J. A.; Gomez-Montoya, R. A.; Cortes, P.; Campo, E. A. (2021). Mrp systems considering fuzzy capacity, lead times and inventory availability. International Journal of Simulation Modelling, 20(1), pp. 29-39. https://doi.org/10.2507/IJSIMM20-1-538
Cedillo-Robles, J. A.; Smith, N. R.; González-Ramirez, R. G.; Alonso-Stocker, J.; Askin, R. G. (2021). A production planning MILP optimization model for a manufacturing company. Rossit, D. A.; Tohmé, F.; Mejía Delgadillo, G., Production Research. ICPR-Americas 2020. Communications in Computer and Information Science, 1407. Springer. https://doi.org/10.1007/978-3-030-76307-7_7
Collao-Diaz, M. F.; Saavedra-Cielo, M. V.; Calderón, W. D.; Reimer, D. (2024). Optimizing fill rate and inventory control in Peruvian bakery SMEs through 5S and MRP integration. SSRG International Journal of Mechanical Engineering, 11(11), pp. 24-33. https://doi.org/10.14445/23488360/IJME-V11I11P103
Deb, K. (2014). Multi-objective optimization. Burke, E; Kendall, G., Search Methodologies. Springer, pp. 403-449. https://doi.org/10.1007/978-1-4614-6940-7_15
Emmerich, M. T. M.; Deutz, A. H. (2018). A tutorial on multiobjective optimization: fundamentals and evolutionary methods. Natural Computing, 17, pp. 585-609. https://doi.org/10.1007/s11047-018-9685-y
Guzman, E.; Andres, B.; Poler, R. (2022). Models and algorithms for production planning, scheduling and sequencing problems: a holistic framework and a systematic review. Journal of Industrial Information Integration, 27, 100287. https://doi.org/10.1016/j.jii.2021.100287
Han, X.; He, Y.; Chen, Z. (2023). An integrated multi-objective production scheduling model considering the production quality state. 2017 Prognostics and System Health Management Conference (PHM-Harbin). China: IEEE, pp. 1-7. https://doi.org/10.1109/PHM.2017.8079231
Klein, N. (2025). Integer programming for multi-mode resource-constrained project scheduling. Annals of Operations Research. https://doi.org/10.1007/s10479-025-06572-1
Küster, T.; Rayling, P.; Wiersig, R.; Pozo Pardo, F. (2023). Multi-objective optimization of energy-efficient production schedules using genetic algorithms. Optimization and Engineering, 24, pp. 447-468. https://doi.org/10.1007/s11081-021-09691-3
Lahrichi, Y.; Damand, D.; Barth, M. (2022). A first MILP model for the parameterization of demand-driven MRP. Computers & Industrial Engineering, 174, 108769. https://doi.org/10.1016/j.cie.2022.108769
Lalami, I.; Frein, Y.; Gayon, J. P. (2017). Production planning in automotive powertrain plants: a case study. International Journal of Production Research, 55(18), pp. 5378-5393. https://doi.org/10.1080/00207543.2017.1315192
Luo, D.; Thevenin, S.; Dolgui, A. (2022). A state-of-the-art on production planning in Industry 4.0. International Journal of Production Research, 61(19), pp. 6602-6632. https://doi.org/10.1080/00207543.2022.2122622
Malindzakova, M.; Garaj, P.; Trpčevská, J.; Malindzak, D. (2022). Setting MRP parameters and optimizing the production planning process. Processes, 10(4). https://doi.org/10.3390/pr10040690
Marchi, B.; Ferretti, I.; Zanoni, S. (2023). Requirements planning in the new normal: Comparison between reorder point method and DDMRP. Alfnes, E.; Romsdal, A.; Strandhagen, J. O.; von Cieminski, G.; Romero, D., Advances in Production Management Systems. APMS 2023. IFIP AICT, 691. Springer. https://doi.org/10.1007/978-3-031-43670-3_52
Miettinen, K.; Ruiz, F. (2016). NAUTILUS framework: towards trade-off-free interaction in multiobjective optimization. Journal of Business Economics, 86, pp. 5-21. https://doi.org/10.1007/s11573-015-0786-0
Prakash, V. M.; Selvakumar, A.; Jihan, Z. (2019). A method study on implementation of Material Requirement Planning (MRP-I) in sample bicycle manufacturing industry. International Journal of Innovative Science and Research Technology, 4(3), pp. 104-108. https://www.ijisrt.com
Rossi, T.; Pozzi, R.; Pero, M.; Cigolini, R. (2016). Improving production planning through finite-capacity MRP. International Journal of Production Research, 55(2), pp. 377-391. http://dx.doi.org/10.1080/00207543.2016.1177235
Spenhoff, P.; Semini, M.; Alfnes, E.; Strandhagen, J. (2014). The fit of planning methods for the part manufacturing industry: a case study. Advanced Manufacturing, 2, pp. 165-172. https://doi.org/10.1007/s40436-014-0075-0
Vidal, G. H.; Hernandez, D. A.; Eslava, E. F.; Coronado-Hernández, J.; Umaña Ibañez, S. (2024). Mathematical modelling of purchasing optimization for an MRP system with containerization constraints. OPSEARCH, 61, pp. 1108-1130. https://doi.org/10.1007/s12597-024-00740-w
Wang, S.; Yang, G.; Liu, S. (2024). A data-driven multi-channel supply chain multi-factory collaborative production planning problem. Soft Computing, (30), pp. 1933-1950. https://doi.org/10.1007/s00500-023-09546-2
Xin, B.; Chen, L.; Chen, J.; Ishibuchi, H.; Hirota, K.; Liu, B. (2018). Interactive multiobjective optimization: a review of the state-of-the-art. IEEE Access, 6, pp. 41256-41279. https://doi.org/10.1109/ACCESS.2018.2856832
Yağmur, E.; Kesen, S. E. (2021). Bi-objective optimization for joint production scheduling and distribution problem with sustainability. Mes, M.; Lalla-Ruiz, E.; Voß, S., Computational Logistics. ICCL 2021. Lecture Notes in Computer Science, 13004. Springer. https://doi.org/10.1007/978-3-030-87672-2_18
Yang, S.; Meng, L.; Ullah, S.; Zhang, B.; Sang, H.; Duan, P. (2025). MILP modeling and optimization of multi-objective three-stage flexible job shop scheduling problem with assembly and AGV transportation. IEEE Access, 13, pp. 25369-25386. https://doi.org/10.1109/ACCESS.2025.3535825