Track: Operations Management

Abstract

Manufacturing activities although vital to economic development, are considered a large consumer of electrical energy. To ensure sustainability of manufacturing operations, an energy-efficient production planning is necessary. Aggregate planning plays a major role in shaping the master production scheduling and consequently the shop floor scheduling operations. This work presents a case study for developing an energy-based aggregate production plan for a porcelain tableware manufacturer in Egypt. The mathematical model used is a mixed integer linear programming model targeting the maximization of the profit while explicitly using the energy cost as one of the cost elements. The model proves its superiority to current management practices in terms of cost reduction and order fulfillment. Total costs are reduced by 23.2% from the real case. The model further assists the decision maker in studying the effect of changes in electricity prices.