Optimal production-distribution planning in electromotor manufacturing industries: a case study

Abstract

Optimal production-distribution planning prevents capital accumulation, reduces costs, unemployment of machinery, and provides a good plan to satisfying customer needs. In this paper, a mixed-integer linear programming (MILP) model is developed to determine optimal production-distribution planning in electromotor manufacturing industries. The proposed model is a multi-product and multi-period one in which optimal amounts of production, inventory and distribution are determined in different periods. Also, the possibility of capacity expansion of facilities in different periods are modelled to optimally determine the capacity increase if necessary. To validate the proposed model, it is applied in a company in Iran producing different electro-motors. The achieved results confirm the efficiency of the model to be used in determining the optimum production-distribution plans in electromotor industries.