Bi-objective robust optimization model for configuring cellular manufacturing system with variable machine reliability and parts demand: A real case study

In this paper, a bi-objective mixed-integer mathematical model is presented for configuration of a dynamic cellular manufacturing system. In this model, dynamic changes and uncertainty in parts demand and machines reliability are considered. The first objective function minimizes total costs and the second one maximizes the machines reliability through minimizing machines failure. In addition, some routes are considered to produce each part based on operational requirements. An appropriate route is selected respect to the costs and operational time. Some parameters are considered under uncertainty in two categories. The first category such as demand is dependent on market condition and the uncontrolled competitive environment. The second one includes some parameters for production system and machines that are directly related to plans organized by production management. A robust optimization approach is used to deal with parameters uncertainty to produce feasible and optimal solutions. Furthermore, for validation and implementation of results in real world, a case study is investigated. Computational results show that the robust model reports better values for objective functions compared to the scenario-based model. In fact, Pareto-front which are resulted by robust model are dominated by scenario-based models’ Pareto front.  Sensitivity analyses on main parameters of the problem are performed to drive some managerial insights that help corresponding decision makers to provide suitable and homogenous decisions in a production system.