Solving sustainable aggregate production planning with model predictive control

Sustainability in a holistic form encompassing environmental, social and economic factors is of utmost importance. Yet, renewable energy's dependence on wind, solar radiation or water levels leads to energy price fluctuations. Companies are increasingly recognizing the economic importance of social sustainability, and this requires production planning to unite economical and sustainable production. In addition, there are challenges resulting from increasing variability in demand in complex markets and supply networks. This paper introduces a nonlinear aggregate production planning (APP) model that recognizes fluctuating energy costs and social sustainability. The model is solved using model predictive control (MPC) in two exemplary case studies.