Decision making for capacity planning in a make-to-order company using mixed integer programming

The objective of this study is to propose a mixed integer model which can help Company T, a Make-to-Order (MTO) Company to make proper decision in accepting or rejecting the customers’ orders. The proposed model can solve small capacity planning problem with the objective function of maximizing the...

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Main Author:	Gan, Teik Kun
Format:	Thesis
Language:	English
Published:	2010
Subjects:	TJ Mechanical engineering and machinery
Online Access:	http://eprints.utm.my/id/eprint/12706/6/GanTeikKunMFKM2010.pdf
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spelling	my-utm-ep.127062017-09-17T08:24:47Z Decision making for capacity planning in a make-to-order company using mixed integer programming 2010 Gan, Teik Kun TJ Mechanical engineering and machinery The objective of this study is to propose a mixed integer model which can help Company T, a Make-to-Order (MTO) Company to make proper decision in accepting or rejecting the customers’ orders. The proposed model can solve small capacity planning problem with the objective function of maximizing the profit with the condition that the orders must be delivered on time. If the company accepts the orders, three decisions can be made within the planning horizon, which are to do the job by normal time, overtime or to outsource it. A small case study was conducted at Company T and the proposed model was solved by using ILOG Optimization Programming Language (OPL). The reasonableness of the optimum solution shows the model is applicable to Company T. Besides that, sensitivity analysis of the model was done as well by using trial and error method. 2010 Thesis http://eprints.utm.my/id/eprint/12706/ http://eprints.utm.my/id/eprint/12706/6/GanTeikKunMFKM2010.pdf application/pdf en public masters Universiti Teknologi Malaysia, Faculty of Mechanical Engineering Faculty of Mechanical Engineering Bertrand, J.W.M. and Sridharan, V. (2001). A study of simple rules for subcontracting in make-to-order manufacturing. European Journal of Operational Research 128, 509-531. Catay B, Erenguc S. and Vakharia, A. (2003). Tool capacity planning in semiconductor manufacturing. Computers and Operations Research 30,1349- 1366 Chen, C. S., Mestry, S., Damodaran, P. and Wang, C. (2009). The capacity planning problem in make-to-order enterprises. Mathematical and Computer Modelling 50,1461 1473. Chen, K. and Ji, P. (2007). A mixed integer programming model for advanced planning and scheduling (APS).European Journal of Operational Research 181, 515-522. Chou, Y. C., Cheng, C. T., Yang, F. C. and Liang, Y. Y. (2007).Evaluating alternative capacity strategies in semiconductor manufacturing under uncertain demand and price scenarios. Int. J. Production Economics 105, 591-606. Ebadian, M., Rabbani, M., Jolai, F., Torabi, S. A. and Moghaddam, R. T. (2008). A new decision-making structure for the order entry stage in make-to-order environments. Int. J. Production Economics 111, 351-367. Harjunkoski, I. and Grossmann, I. E. (2002). Decomposition techniques for multistage scheduling problems using mixed-integer and constraint programming methods. Computers and Chemical Engineering 26, 1533-1552 Heizer, J. and Render, B. (2008). Operations Management. (9th Ed.). Upper Saddle River, New Jersey: Pearson Education. Hopp, W. J. and Spearman, M. L. (2008). Factory Physics. (3rd Ed.). Americas, New York: McGraw-Hill/Irwin. IBM (2009). IBM ILOG OPL V6.3. IBM ILOG OPL PDF Documentation. Kim, S. and Uzsoy, R. (2009). Heuristics for capacity planning problems with congestion. Computers & Operations Research 36, 1924 - 1934. Koltai, T. and Tatay, T. (2010). A Pratical Approach to Sensitivity Analysis in Linear Programming under Degeneracy for Management Decision Making. International Journal of Production Economics, doi:10.1016/j.ijpe.2010.04.037. Koltai, T and Terlaky, T. (2000). The Difference between the Managerial and Mathematical Interpretation of Sensitivity Analysis Results in Linear Programming. International Journal of Production Economics 65, 257-274. Swaminathan, J. M. (2000). Tool capacity planning for semiconductor fabrication facilities under demand uncertainty. European Journal of Operational Research 120,545-558. Taylor, B. W. (2010). Introduction to Management Science. (10th Ed.).Upper Saddle River, New Jersy: Pearson Education. Zhang, R. Q. (2007). Research on Capacity Planning under Stochastic Production and Uncertain Demand.Systems Engineering - Theory & Practice, 27(1), 51-59
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	TJ Mechanical engineering and machinery
spellingShingle	TJ Mechanical engineering and machinery Gan, Teik Kun Decision making for capacity planning in a make-to-order company using mixed integer programming
description	The objective of this study is to propose a mixed integer model which can help Company T, a Make-to-Order (MTO) Company to make proper decision in accepting or rejecting the customers’ orders. The proposed model can solve small capacity planning problem with the objective function of maximizing the profit with the condition that the orders must be delivered on time. If the company accepts the orders, three decisions can be made within the planning horizon, which are to do the job by normal time, overtime or to outsource it. A small case study was conducted at Company T and the proposed model was solved by using ILOG Optimization Programming Language (OPL). The reasonableness of the optimum solution shows the model is applicable to Company T. Besides that, sensitivity analysis of the model was done as well by using trial and error method.
format	Thesis
qualification_level	Master's degree
author	Gan, Teik Kun
author_facet	Gan, Teik Kun
author_sort	Gan, Teik Kun
title	Decision making for capacity planning in a make-to-order company using mixed integer programming
title_short	Decision making for capacity planning in a make-to-order company using mixed integer programming
title_full	Decision making for capacity planning in a make-to-order company using mixed integer programming
title_fullStr	Decision making for capacity planning in a make-to-order company using mixed integer programming
title_full_unstemmed	Decision making for capacity planning in a make-to-order company using mixed integer programming
title_sort	decision making for capacity planning in a make-to-order company using mixed integer programming
granting_institution	Universiti Teknologi Malaysia, Faculty of Mechanical Engineering
granting_department	Faculty of Mechanical Engineering
publishDate	2010
url	http://eprints.utm.my/id/eprint/12706/6/GanTeikKunMFKM2010.pdf
_version_	1747814949491572736

Decision making for capacity planning in a make-to-order company using mixed integer programming

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