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Optimizing material planning in make-to-order production: a case study of a roller shutter company |
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| รหัสดีโอไอ | |
| Title | Optimizing material planning in make-to-order production: a case study of a roller shutter company |
| Creator | Haofeng Sun |
| Contributor | Pisal Yenradee, Advisor |
| Publisher | Thammasat University |
| Publication Year | 2568 |
| Keyword | Material planning, Make-to-order (MTO), Production schedule, Mixed integer linear programming (MILP), Cost control |
| Abstract | Thailand's manufacturing industry is a cornerstone of its economic growth, significantly contributing to GDP and employment, and the backbone of the manufacturing industry is small and medium-sized enterprises (SMEs). In this dynamic business landscape, make-to-order (MTO) manufacturing, which aligns production processes with individual customer orders, is popular among Thai SMEs. This study aims to develop a Mixed-Integer Linear Programming (MILP) model to determine the optimal purchasing plan of main components to minimize total costs. It also seeks to validate the MILP model through a case study of a roller shutter door company and analyze the impact of different material planning strategies on the efficiency and profitability of MTO production systems. The methodology includes data collection on customer demand, raw material prices, and freight costs, followed by the development of a MILP model with linear relationships and constraints. Parameters are input into the model, and the results are validated and evaluated to ensure optimality. If results are not optimal, constraints and parameters are refined, and the process is repeated until the optimal solution is found. The final step involves analyzing the results to draw conclusions and make recommendations. The MILP model, compared to the experience-based purchasing strategy of the traditional operations manager, shows significant cost reduction. The MILP model saved more than 24% in operational costs by suggesting specific periods and specific quantity for placing orders that minimize ordering, inventory carrying, freight, and purchase costs. The MILP model provided a more cost-effective and efficient procurement strategy, aligning with the company's goal of cost minimization and efficiency. |
