A Production planing system for a furniture manufacturing company

ABSTRACTA PRODUCTION PLANING SYSTEM FOR A FURNITUREMANUFACTURING COMPANYMurat ÖZKANMasters ThesisDepartment of Business AdministrationSupervisors: Prof. Funda SIVRIKAYA ŞERIFOĞLUAssoc. Prof. Ismail EROLJune 2006, 108 PagesIn this thesis, a production planning model has been developed forenhancing efficient planning of production of the firms in the furnituremanufacturing industry. The aim is to minimize total production, inventory, andlabor costs. The model has been designed as an integer linear programming model,and is applied to one of the best selling product lines in one of the largest furnitureproducers of Turkey. The results show that the total costs have been decreased by 20per cent as compared to the costs of the plan obtained by the company using heuristicrules. An especially large improvement has been obtained regarding inventoryholding costs, which decreased by 87 per cent according to the results of the model.Production planning, linear programming, and furnitureKey Words:industry.