Application of aggregate production planning: An example of furniture industry

In this study, it is aimed to apply aggregate production planning in a furniture company which produces teenager, bedroom, dining room and sitting groups. Pre-empitive goal programming has been used which is an effective method in aggregate production planning solution. Production plan has been determined as 4 periods of 3 months each. Two different aggregate production plans has been suggested. One of the plans is two priority goal programming. First priority is targeted profit, second is both production size and line smoothing. Other production plan suggested consist of three priorities. First priority is targeted profit, second priority is targeted production size, third priority is line smoothing. It has been showned that both suggested production plans will provide more profit than the previous one. Besides, idle times will reduce according to these plans. At the end of four periods, profit expectation in the three priority production model is 40588240 TL. Expected profit in the two priority production plan is 39212660 TL. As a result of this study, the importance of production planning and control activities on the corporate profitability has been showned and it is concluded that scientific methods should be used. Based on the suggested production plan, it is possible to get new results by changing product numbers, types and number of planning periods.