Bi-level programming for joint order acceptance and production planning in industrial robot manufacturing enterprise

Effectively addressing the Order Acceptance and Production Planning (OAP) problem is crucial for industrial robot manufacturers, particularly considering the rapid expansion of the industrial robot market. A bi-level programming model is structured to enhance synergies in response to department reformation within an industrial robot manufacturer. The upper-level model focuses on order acceptance, considering rejection and delay penalty costs, aiming to maximize enterprise profit. The lower-level model concentrates on product production, aiming to minimize the total sum of production costs and Work-In-Progress (WIP) holding costs. Detailed constraints related to material readiness, including inventory levels and procurement lead times, are comprehensively examined. Given the NP-hard complexity of this multi-objective problem, a meta-heuristic algorithm Whale Optimization Algorithm (WOA) is implemented. To enhance WOA's optimization capabilities, two heuristic algorithms, Solution Improvement policy (I-algorithm) and Heuristic-based acceleration strategy (H-algorithm), are introduced, resulting in the development of WOA-IH. The experimental evidence suggests that the proposed model facilitates decision coordination for manufacturers, particularly in order management, production planning, and material procurement. Furthermore, this study contributes to applying bi-level programming theory in managing supply chains for industrial robotics.