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Implementing Production of Seasonal Demand Goods at Industrial Enterprises

Authors: Aleksandrov An.A. Published: 06.06.2020
Published in issue: #3(132)/2020  

DOI: 10.18698/0236-3941-2020-3-47-61

 
Category: Mechanical Engineering and Machine Science | Chapter: Organization of Production  
Keywords: production plan, seasonal demand, core production capacity, optimum production capacity, production expenditure minimisation

The paper states an industrial engineering problem concerning industrial enterprises manufacturing goods for seasonal industries and activities. We developed a method for selecting optimum enterprise production capacity and forming a production plan that allows for meeting seasonal increases in demand, simultaneously ensuring rational utilisation of human resources, manufacturing equipment and storage facilities. The basis of the method is seeking the production volume function by minimising total expenditures for storage and manufacturing of goods, provided the seasonal demand is fully met over the whole period. We present a numerical implementation algorithm for our method and a calculation example. The main stages of the algorithm are as follows: setting the demand function; computing the core production capacity as dictated by steady equipment utilisation; varying the production plan until the minimum total expenditure condition is met. We ran a series of simulations that allowed us to establish the function describing the optimum production capacity as a fraction of the core capacity for various ratios of manufacturing expenditures to storage expenditures, and as a function of the overpayment rate for additional capacities

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