Abstract

The main aim of this thesis is to develop an optimization model that provides an optimal production plan for a make-to-stock (MTS) manufacturing environment that includes the production of multi products on multiple machines over a definite number of planning periods. While optimizing the production plan and inventory levels for this general problem under study, a set of constraints will be kept throughout the planning horizon. These constraints include maximum production capacity, maxrmum storage capacity, minimum and maximum coverage, minimum production quantities and others. Mixed integer programming (MIP) will be used as a tool to optimize the total cost involved in such a problem within the MTS manufacturing environment; mathematical programming language (MPL) will be the software used for solving the 1v1IP model. To validate the effectiveness of this optimization model, a company that exhibits the same characteristics of the MTS environment is chosen and its optimal production plan is developed. The company chosen to apply this model to is Nestle Egypt, specifically its ice cream factory. Due to the nature of the above problem within the MTS manufacturing environment, which is characterized by severe seasonality in demand, an auxiliary model that generates statistical forecast will be developed. The output of such a model will be used as an input to the main 1v1IP model. Another auxiliary model that calculates adequate safety stock levels for each product will be also developed in order to account for demand fluctuations. A sensitivity analysis is done to test the effect of all variables on the objective function. Based on such analysis, the effect of changing some resources is investigated along with testing the effect of changing the coefficients of the objective function. The benefits of using such a model are highlighted showing substantial savings when compared to the currently used production plan. Estimated savings generated from applying the proposed model on a large scale by Nestle Egypt, could exceed 1,100,000 LE per year.

School

School of Sciences and Engineering

Date of Award

6-1-2002

Online Submission Date

1-1-2002

First Advisor

Hatem Elayat

Committee Member 1

Nahed Sobhi Abdel Nour

Committee Member 2

Amin El Kharbotly

Committee Member 3

Maher Y.A. Younan

Document Type

Thesis

Extent

108 leaves

Library of Congress Subject Heading 1

Production engineering.

Library of Congress Subject Heading 2

Manufacturing processes.

Rights

The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy.

Call Number

Thesis 2002/38

Location

mgfth

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Included in

Engineering Commons

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