Development of an integrated solution for production planning in a yarn production plant

Nowadays, satisfying customer demand at an optimal cost is one of the most im-portant subjects for the textile market. In the developing world of technology, com-panies are working on how to handle effective solutions to increase customer expec-tations and product diversity. Therefore, the firms have been researching for cost effective solutions for their operational tasks, with the increasing competition and the rapid change in technologies. Production planning supported by computer systems and software has become part of these solution strategies. In this thesis, model was set up firstly, then a production planning software was designed for a real yam pro-duction company. Firstly, the demand forecasts are produced by using historical data with several forecasting methods and the method that produces the minimum error is selected. Subsequently, a mathematical model is established to maximize the total profit (minimize the total cost) under certain constraints. An interface was also de-veloped to manage all of the operations required to run the system. Java programming language was used to design the interface. The developed software is capable of retrieving the related data from the ERP system of the company and capable of exporting the mathematical model to Gurobi Optimization solver and importing the results. The obtained results were evaluated by considering sensitivity analysis report. Results indicated that, the annual profit for selected products increased by proposed production planning.