OPTIMIZATION MODEL FOR ASSESSING THE PROCESS AND PRODUCTION PLANNING TO HELP REDUCE RISK AND IMPROVE THE MANAGEMENT AND OPERATION OF TAXATION PROCESSING FACTORY

Abstract

Product recall is becoming an inevitable trend in production in terms of customer service, which is a key competitive factor. This study proposes a mathematical model to optimize traceability based on mass dispersion method to minimize product recall costs. A Mixed Integer Nonlinear Programming (MINLP) model is established based on batch size and production lot scattering under the results of risk assessment according to the Analytic Hierarchy Process (AHP). Data were collected directly from Phuong Anh Seafood Processing and Import-Export Joint Stock Company. The results show that the proposed model is feasible and fully adaptable when the market parameters change.