Design of a production planning system for a production line of a paint industry

Abstract

In any organization, especially in industry, supply chain planning is essential not only for proper work organization, but also for achieving strategic business objectives, such as profitability, customer satisfaction, and cost competitiveness. This task is not always simple for those in charge of planning and production control, since the main challenge they face is adapting the plans to the particular situation of each company. In this paper is presented the design of a production planning system for a production line of a paint industry, with a simple and effective model for forecasting sales and managing inventories, in order to adequately meet the expected demand but with reduced inventory levels. The results obtained through the validation of the production planning and control system designed in this study show an increase in annual turnover and savings in inventory maintenance costs. These optimizations also imply a significant reduction in sales losses due to stock breaks, loss of materials due to packaging waste, and costs of reprocessing products due to obsolescence and other damages caused by excess storage. Finally, an additional contribution that results from this production plan is the obtaining of the total bill of materials for the manufacture of the products, facilitating the management of the company’s purchases.