Sugar is produced by crushing sugarcanes at the Rajshahi Sugar Mill where sugar is produced throughout a certain period of the year, But the number of factory workers remains the same consistency throughout the year, which adds a large amount of cost to the production cost. The problem has been solved by using Aggregate Production Planning. Aggregate production planning (APP) is working for the determination of optimum production and workforce levels for each period over a planning stage. The motive of this study is to optimize the production cost by determining the workforce levels and inventory level for each period as well as to compare the optimized cost with their previous one.
Data were collected directly from the Rajshahi Sugar Mill authority and afterward, a Linear Programming Model has been formulated by these datasets. Thereafter an optimum value was determined by using LINGO software. Finally, we compared the previous cost with the optimized cost, where the cost has been diminished by about 4%.