A Study on the Use of Linear Programming in Contract Manufacturing Planning: Example of Automotive Sub-Industry Cover Image

Fason Üretim Planlamada Doğrusal Programlamanın Kullanılmasına Yönelik Bir Çalışma: Otomotiv Yan Sanayi Örneği
A Study on the Use of Linear Programming in Contract Manufacturing Planning: Example of Automotive Sub-Industry

Author(s): Remzi Başar, Yücel Eyüpoğlu
Subject(s): Business Economy / Management, Methodology and research technology, Transport / Logistics
Published by: Haci Mustafa Paksoy
Keywords: Production planning; Contract manufacturing; Production to stock; Linear programming;

Summary/Abstract: In this study, the optimum production quantities and maximum profit that the company can produce are calculated on the mathematical model designed for an automotive supplier industry company engaged in large-scale production. With the work carried out, it is aimed to increase the capacity of the enterprise to meet orders in case of instant order increases and to increase profits. In the study, linear programming method was used and a model was developed for contract manufacturing planning by taking into account the data and production constraints of the current production. Production data between 1 July and 1 August 2022 taken from the enterprise resource planning (ERP) application software called HarmonyERP used by the enterprise, was used. When the capacity is increased in the warehouses required for the products, an increase in profit has been achieved and it has been seen that maximum profit increase can be achieved when the subcontracting cost is subtracted from this profit. With the study, the maximum production quantities that will provide the highest profitability according to the production constraints of the enterprise have been found and production planning has been made for the product group that has contracted production. By adding the warehouse constraints of the enterprise, the level at which the profit will be maximum for contract production planning has been found and the production numbers that must be achieved in order to reach this profitability level have been obtained.

  • Issue Year: 8/2023
  • Issue No: 21
  • Page Range: 600-617
  • Page Count: 18
  • Language: Turkish