Optimization of Production Volume in Automobile Assembly Plant

Abstract

Linear programming is one of the most reviewed mathematical technique for the optimization of production volume through the integration of wider areas of production into a single mathematical model to obtain the managerial insights while considering the various business parameters having the significant impact on cost of production. The optimization of production volume require the great attention about production resources and operations over the planning horizon to meet the demand of customers while minimizing the cost of production. This research paper proposes the methodology for optimization of production volume by using linear programing mathematical technique that entails the objective function of maximization of total profit which is subjected to the variety of production constraints that should be acceptable over the planning horizons. The aim of research is to obtain the economic production volume that should meet the capacity of the production and demand of the product over the planning horizon. The generated results will also provide the baseline for economic production scheduling and inventory control by ensuring the availability of resources over the finite planning horizons in order to avoid the further delays in the delivery of the products to the customers. Finally, the proposed method was tested by using the data of automobile assembly plant.