Production management for coach's handbag at TBS group

Abstract

Increased attention is nowadays devoted to production management, the focus of this thesis is the concept of maximizing enterprise’s profit and the factors that determine it. The paper aims at the formulation of the aggregate planning for manufacturing that would include all relevant factors of production and its operational constraints, including production capacity, workforce level, storage space and other resource limitations. A further objective is to investigate certain aspects of production management theory through the real handbag manufacturing in order to provide flexible management instruments adapted to changing demands. In this context, TBS production plant in Binh Duong is considered simultaneously. A linear programming model is developed to maximize profit, minimize back order cost and maximize inventory utilization of TBS production plant. A set of data from Coach’s handbag – one of TBS’s customer is used to test the effectiveness and the efficiency of the proposed model. Results illustrate the flexibility and the robustness of the proposed model by adjusting goal priorities with respect to the importance of each objective and the aspiration level with respect to desired target values. Keywords: Aggregate production planning, Linear programming, Handbag industry, Optimization modelling, Utilization