Daily Production Planning Problem of an International Energy Management Company

This study is about real-life production and capacity planning problem in an international company which operates in energy management sector in Manisa, Turkey. The company produces different types of circuit breakers and delivers its products to different countries and distribution center, located in France. Within the scope of this problem, the production plan is done for nine products that are manufactured on six production lines. Each product has a unique production line, but some of the products are processed on common production lines. In this study, the production lot amount is determined each day by considering the due date and quantity of the customer orders without exceeding the capacity of the production lines. In the existing system, there are many tardy and early customer orders and the production plan is done manually which causes time loss for the company. A preemptive goal programming model is proposed for solving this problem where the main goal is to minimize total lateness in customer orders and minimizing the number of customer orders that have been split is considered as the secondary objective. The proposed mathematical model is solved optimally for real life instances in IBM ILOG CPLEX Optimization Studio 12.6.3. In addition, a heuristic method is presented in order to decrease the daily production planning duration and the fulfill the company’s needs. Moreover, a user-friendly decision support system is developed where both solution techniques are embedded.