Design Of Mixed Integer Linear Programming Model For Optimization Of Production -Inventory Systems: A Case Study In Datalogic Vietnam Company

Abstract

The production-inventory system has been crucial for operations in determining how much to produce to fulfill future customer demands while also maintaining as low an inventory level as possible within a business. The thesis investigates production-inventory problem of a electronic company. Through observation at the warehouse and data analysis, the research has established that insufficiency and overstock have turned into major issues in inventory control. Then, to deal with the complexity of this problem, a mixed intger linear programming is developed. The proposed model is applied for Datalogic Vietnam Company, a manufacturing company for electronic products. Moreover, this model’s objectives are to reduce the total costs down to at least 10-20% and inventory amount at least 10% as well. The results show the optimization of production-inventory system. In addition, CPLEX programming was a tool to find the exact solution. Regarding the data collection, a sample of 12 months with three item categories is used to illustrate the applicability of the proposed mathematical model which brings out the feasible solutions. Additionally, Microsoft Excel 2016 will be a support tool for analysis.