Mathematical Modeling of Data-Driven Multi-Objective Production Planning with Machine Learning in the Biopharmaceutical Industry: Integrating Demand Forecasting and Sustainable Optimization

Authors

    Seyed Ghasem Salimi Zaviyeh * Ph.D Student of Department of Information Technology and Operations Management, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran. sg.salimi@gmail.com
    Abolfazl Kazazi Professor, Department of Information Technology and Operations Management, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran.
    Iman Raeesi Vanani Associate Professor, Department of Information Technology and Operations Management, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran
    Soroush Ghazinoori Professor, Department of Management of Technology and Entrepreneurship, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran.

Keywords:

data-driven production planning, biopharmaceutical industry, multi-objective model, artificial neural network (ANN), Long Short-Term Memory (LSTM), Genetic Algorithm (GA), Particle Swarm Optimization (PSO)

Abstract

The biopharmaceutical industry, as one of the most advanced sectors of the modern pharmaceutical field, faces multiple challenges such as demand fluctuations, resource constraints, complex manufacturing processes, and environmental requirements. In this context, data-driven and intelligence-based approaches can play a key role in improving decision-making accuracy, sustainability, and profitability. This study aims to develop a comprehensive framework for sustainable production planning by integrating demand forecasting with multi-objective mathematical modeling. In the first step, real data for nine selected drugs were collected over a 36-month period and used to forecast demand patterns through Artificial Neural Networks (ANN) and Long Short-Term Memory (LSTM) networks. The results showed that the ANN model, with a Root Mean Square Error (RMSE) of 868, was able to reconstruct demand trends with moderate accuracy, while the LSTM model estimated average demand with an error of less than 1% at the drug–scenario level. In the second step, a multi-product and multi-objective mathematical model was designed to simultaneously address economic goals (profit maximization and cost reduction) and environmental goals (pollution and waste minimization). To solve the model, Genetic Algorithms (GA) and Particle Swarm Optimization (PSO) were applied in combination with the epsilon-constraint method to extract the Pareto front. The findings revealed that GA had relative superiority in faster convergence, whereas PSO performed better in broad exploration of the solution space. Moreover, multivariate sensitivity analysis indicated that production capacity, raw material cost, and emission rates have the greatest impact on the results. By bridging the gap between demand forecasting and production optimization, this research provides a practical framework for intelligent decision-making in Iran’s biopharmaceutical industry and can contribute to supply chain resilience, cost reduction, and achieving sustainable development goals.

References

Ahmed, M. M., et al. (2020). An Environmentally Sustainable Closed-Loop Supply Chain Network. Design under Uncertainty: Application of Optimization..https://doi.org/10.48550/arXiv.2009.11979

Brownlee, J. (2018). Deep Learning for Time Series Forecasting: Predict the Future with MLPs, CNNs and LSTMs in Python. Machine Learning Mastery.

Bertsimas, D., Gupta, V., & Kallus, N. (2018). Data-driven robust optimization. Mathematical Programming, 167(2), 235–292. https://doi.org/10.1007/s10107-017-1125-8

Deb, K., Pratap, A., Agarwal, S., & Meyarivan, T. (2002). A fast and elitist multiobjective genetic algorithm: NSGA-II. IEEE Transactions on Evolutionary Computation, 6(2), 182–197. IEEE. https://doi.org/10.1109/4235.996017.

Daniel Alejandro Rossit, Fernando Tohmé, Mariano Frutos,(2019),A data-driven scheduling approach to smart manufacturing,Journal of Industrial Information Integration,Volume 15,Pages 69-79. https://doi.org/10.1016/j.jii.2019.04.003

Emami H, radfar R, emami F. (2018).Commercialization Modeling and Processes in Pharmaceutical Industry: A Case Study of Presenting an Evaluation Pattern Using Dynamic Programming Model. Hakim; 21 (3):211-220. URL: http://hakim.tums.ac.ir/article-1-1551-en.html

Grand View Research. (2023). Biopharmaceuticals Market Size, Share & Trends Analysis Report. https://www.grandviewresearch.com

Gama, F., Wang, S. (2024). Data-Driven Robust Production Planning. In: Facility Location Under Uncertainty. International Series in Operations Research & Management Science, vol 356. Springer, Cham. https://doi.org/10.1007/978-3-031-55927-3_16

Hu, F., Zhang, L., & Wang, J. (2024). A Hybrid Convolutional–Long Short-Term Memory–Attention Framework for Short-Term Photovoltaic Power Forecasting, Incorporating Data from Neighboring Stations. Applied Sciences, 14(12), 5189. https://doi.org/10.3390/app14125189

Hochreiter, S., & Schmidhuber, J. (1997). Long short-term memory. Neural Computation, 9(8), 1735–1780. https://doi.org/10.1162/neco.1997.9.8.1735

Javaid, W., & Ullah, S. (2025). Data driven simulation based optimization model for job-shop production planning and scheduling: an application in a digital twin shop floor. Journal of Simulation, 1–15. https://doi.org/10.1080/17477778.2025.2469687

Janatyan, N. , Zandieh, M. , Alem Tabriz, A. and Rabieh, M. (2019). Optimizing Sustainable Pharmaceutical Distribution Network Model with Evolutionary Multi-objective Algorithms (Case Study: Darupakhsh Company). Research in Production and Operations Management, 10(1), 133-153.doi: 10.22108/jpom.2019.110116.112

Lee, J. et al. (2015). Recent advances and trends in predictive manufacturing systems in big data environment. Manufacturing Letters, 1(1), 38–41. https://doi.org/10.1016/j.mfglet.2013.09.005

Luo, D., Guan, Z., Ding, L., Fang, W., & Zhu, H. (2025). A Data-Driven Methodology for Hierarchical Production Planning with LSTM-Q Network-Based Demand Forecast. Symmetry, 17(5), 655. https://doi.org/10.3390/sym17050655

Larizadeh, Babak Mohamadpour Tosarkani,(2025).A novel data-driven rolling horizon production planning approach for the plastic industry under the uncertainty of demand and recycling rate,Expert Systems with Applications,Volume 263,ISSN 0957-4174, https://doi.org/10.1016/j.eswa.2024.125728.

Mavrotas, G. (2009). Effective implementation of the ε-constraint method in multi-objective mathematical programming problems. Applied Mathematics and Computation, 213(2), 455–465. https://doi.org/10.1016/j.amc.2009.03.037

Mehrjerdi, Y. Z., & Shafieezadeh, M. (2019). A hybrid PSO for optimization of pharmaceutical product scheduling with environmental considerations. Expert Systems with Applications, 126, 183-195.

MansooriMooseloo, F. , Amiri, M. , Taghavi Fard, M. T. and Hajiaghaei-Keshteli, M. (2024). Designing and planning a bioethanol supply chain network under uncertainty using a data-driven robust optimization model under disjunctive uncertainty sets. Journal of Decisions and Operations Research, 9(2), 327-352. doi: 10.22105/dmor.2024.461901.1849

Ma, S., Zhang, Y., Liu, Y., Yang, H., Lv, J., & Ren, S. (2020). Data-Driven Sustainable Intelligent Manufacturing Based on Demand Response for Energy-Intensive Industries. Journal of Cleaner Production, 274, Article ID: 123155. https://doi.org/10.1016/j.jclepro.2020.123155

Ning, C., & You, F. (2019). Optimization under Uncertainty in the Era of Big Data and Deep Learning. arXiv:1904.01934. https://doi.org/10.1016/j.compchemeng.2019.03.034

Pharmaceutical Technology. (2023). Top 20 biopharmaceutical companies hold their spot despite market cap drop in Q1 2022. Retrieved from https://www.pharmaceutical-technology.com 4. Built In. (2024)

Kabulov, A., et al. (2024). Models, methods and algorithms for monitoring environmental impact on agricultural production. https://doi.org/10.48550/arXiv.2402.03346

Khaled, M. S., Shaban, I. A., Karam, A., Hussain, M., Zahran, I., & Hussein, M. (2022). An Analysis of Research Trends in the Sustainability of Production Planning. Energies, 15(2), 483. https://doi.org/10.3390/en15020483

Kennedy, J., & Eberhart, R. (1995). Particle swarm optimization. Proceedings of ICNN'95 - International Conference on Neural Networks, 4, 1942–1948. IEEE. https://doi.org/10.1109/ICNN.1995.488968

kalantari, M. and Pishvaee, M. S. (2016). A Robust Possibilistic Programming Approach to Drug Supply Chain Master Planning. Journal of Industrial Engineering Research in Production Systems, 4(7), 49-67. doi: 10.22084/ier.2016.1568

Radmehr, M., Abdollahzadeh Sangroudi, H., & Sahebjamnia, N. (2020). An integrated mathematical model of production and distribution planning for radiopharmaceutical products (Case study: Pars isotope company). Supply Chain Management, 22(67), 80-92. DOR:20.1001.1.20089198.1399.22.67.6.5

Sun, D., et al. (2019). PlanningVis: A Visual Analytics Approach to Production Planning in Smart Factories. arXiv:1907.12201. https://doi.org/10.1109/TVCG.2019.2934275

Su, X., Zeng, L., Shao, B. and Lin, B. (2025), "Data-driven optimization for production planning with multiple demand features", Kybernetes, Vol. 54 No. 1, pp. 110-133. https://doi.org/10.1108/K-04-2023-0690

Talagrand, M., Morshedlou, N., & Mansouri, S. A. (2019). A hybrid PSO-based approach for multi-objective production-distribution planning in supply chains. Expert Systems with Applications, 123, 62–78. https://doi.org/10.1016/j.eswa.2019.01.033

Shah, N. (2020). Challenges in Biopharmaceutical Manufacturing. Biotechnology Advances, 39, 107465.

Sachidananda, M., Lienert, T., & Fischer, U. (2016). Discrete event simulation based decision support for dynamic production environments in biopharmaceutical industry. *Procedia CIRP, 49*, 39–44. https://doi.org/10.1016/j.procir.2015.07.026

Yu, Y., Zhang, Y., & Yang, L. (2020). Demand Forecasting in Pharmaceutical Supply Chain: A Hybrid Intelligent Model. Journal of Intelligent Manufacturing, 31(2), 389–404.

Völker and L. Mönch, "Data-Driven Production Planning Models for Wafer Fabs: An Exploratory Study," in IEEE Transactions on Semiconductor Manufacturing, vol. 36, no. 3, pp. 445-457, Aug. 2023, doi: 10.1109/TSM.2023.3277410

Zhang, H., Wang, H., Liu, Y., & Chen, M. (2022). Predicting demand for pharmaceutical time series data using shallow and deep neural networks. Neural Computing and Applications, 34, 11625–11641. https://doi.org/10.1007/s00521-022-07889-9

Zhang, L., Liu, Y., & Zhao, X. (2020). Multivariable sensitivity analysis of biopharmaceutical demand forecasting using artificial neural networks. Journal of Biomedical Informatics, 109, 103526. https://doi.org/10.1016/j.jbi.2020.103526

Downloads

Published

2025-09-23

Submitted

2025-08-07

Revised

2025-09-14

Accepted

2025-09-20

Issue

Section

Articles

How to Cite

Salimi Zaviyeh, S. G., Kazazi, A. ., Raeesi Vanani, I. ., & Ghazinoori, S. . (2025). Mathematical Modeling of Data-Driven Multi-Objective Production Planning with Machine Learning in the Biopharmaceutical Industry: Integrating Demand Forecasting and Sustainable Optimization. The Decision Science and Intelligent Systems, 1-48. https://dsisj.com/index.php/dsisj/article/view/47

Similar Articles

1-10 of 22

You may also start an advanced similarity search for this article.