| Author | Gunasingh, K. Raja |
| Call Number | AIT RSPR no. IE-84-11 |
| Subject(s) | Paper mills--Production methods
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | This study is concerned with the methods to improve the profitability of a paper mill. The mill Consists of a single production line producing four major product grades using two different processes and sells its products in three different markets. The preliminary analysis of the company's management practices revealed that sales forecasting, production and sales planning procedures and inventory policies are the potential areas for profitability improvement.
Regression and Box-Jenkins models are analysed using the past sales data and the appropriate Box-Jenkins Model is selected for each product grade. A single stage, multi period, multi-product, multi-process and multi-market linear programming model (known ad Dynamic Product Mix model) is developed for production and sales planning. It has 254 constraints and 288 variables. The constraints incorporated in the model are: raw materials availability, machine hours availability, inventory balance, minimum inventory levels and sales potentials. The objective is to maximise the overall profit (Sales revenue - direct production cost - holding costs). The model is subjected to sensitivity analysis w.r.t. raw materials availability, minimum inventory levels and minimum sales potentials. The cost-benefit analysis of the model indicates that the use of the model is economically justified.
Heuristic methods are suggested to solve the production and sales planning problem manually. For the year 1984, these heuristics seem to perform within 2% of the Dynamic product mix model.
Inventory policies of the A class materials are revised taking into consideration the economic aspects. Output of the Dynamic Product Mix model indicates that the production facility is not fully utilized. Hence, an analysis to decide on the optimal operating strategy (throttle the production rate to equal demand or to produce at capacity rates and shutdown periodically) is also done.
The total anticipate annual savings as a result of this study is approximately 8.0 million baht. |
| Year | 1984 |
| Type | Research Study Project Report (RSPR) |
| School | School of Engineering and Technology |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Engineering (IE) |
| Chairperson(s) | Tabucanon, Mario T. |
| Examination Committee(s) | Oudheusden, Dirk L. Van ; Clarke Harry R.
|
| Scholarship Donor(s) | KEIDANREN, Federation of Economic Organisation, Japan |
| Degree | Research Studies Project Report (M. Eng.) - Asian Institute of Technology, 1984 |