An optimization model for production planning in a tire factory | |
| Author | Sundararajan, Veeragathy |
| Call Number | AIT Thesis no. IE-79-17 |
| Subject(s) | Tire industry--Management Production planning--Mathematical models |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | This study is concerned with the development of a multi-period multiproduct model for production planning in a tire factory. The factory selected is composed of 102 machine units in the main production line, while the product line consists of 217 different finished products. A study based on the contribution of each product to total sales revenue revealed 26 products, which are responsible for 92% of the total sales revenue. Grouping the machines according to their functional usage in the production line, resulted in 32 machine groups. The constraints identified and incorporated in the model are: limited capacity of production facilities, limited storage area in the warehouses, expected market demand for finished products, and the factory's policy on producing equal amounts of flaps and truck- tires. The management objectives considered are: maximization of revenue, maximization of machine utilization, minimization of finished product shortage, and keeping the employment level in the factory either constant or increasing. A twelve-period linear programming model is then developed. It composed of 759 constraints, 1733 variables, and 6183 elements. This model is then passed through a refinement procedure to enhance the optimality of certain parameters of the model. To determine the effects of changes in forecasted demand, a sensitivity analysis is also performed on the model. Finally, to conform to the basic instinct of all profit-seeking organizations, a cost-benefit analysis is carried out. The study concludes on the economic feasibility of the model, since the expected increase in revenue outweighs the cost of developing and utilizing this model. |
| Year | 1979 |
| Type | Thesis |
| School | School of Engineering and Technology |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Engineering (IE) |
| Chairperson(s) | Tabucanon, Mario T. ;Pakorn Adulbhan; |
| Examination Committee(s) | Tang, John C.S. ; |
| Scholarship Donor(s) | Government of Netherlands ; |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 1979 |