Capacity planning in a textile company

This thesis provides the opportunity of launching the capacity planning system in a company in the textile sector. The objective of this project is handling the demand fluctuations by utilizing regular time working capacity and subcontractor capacity for each product group in a predetermined planning period and giving the customer realistic due dates. To fulfill this target, it is essential to keep the company?s and subcontractor?s production costs at the minimum while meeting the due dates at optimum.In order to achieve these goals a hybrid approach involving a two phased solution methodology is carried out. First an allocation problem is solved using mathematical programming following the assignment of jobs to the facilities under given capacity constraints. Afterwards, a detailed simulation model of the production floor is run to determine in which order the jobs will be processed on these facilities. The output of the mathematical programming model is used as an input for the simulation model. The use of analytical modeling and simulation together as a hybrid approach leads to a mathematically optimal and a realistically feasible solution.