Multiperiod production planning and design of batch plants under uncertainty

A two-stage stochastic multiperiod LGDP (linear generalized disjunctive programming) model was developed to address the integrated design and production planning of multiproduct batch plants. Both problems are encompassed considering uncertainty in product demands represented by a set of scenarios. The design variables are modeled as here-and-now decisions which are made before the demand realization, while the production planning variables are delayed in a wait-and-see mode to optimize in the face of uncertainty. Specifically, the proposed model determines the structure of the batch plant (duplication of units in series and in parallel) and the unit sizes, together with the production planning decisions in each time period within each scenario. The model also allows the incorporation of new equipment items at different periods. The objective is to maximize the expected net present value of the benefit. To assess the advantages of the proposed formulation, an extraction process that produces oleoresins is solved.

► A stochastic multiperiod LGDP model for the production planning and design of multiproduct batch plants is developed.
► Uncertain product demands are considered in a multi-scenario approach.
► The approach considers duplication of units in series and in parallel.
► The incorporation of new equipment items at different periods is allowed.