Production Planning at a Chocolate Company: A Two-Phase Approach by Aggregation

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dc.authorscopusid57212212831
dc.authorscopusid57212213600
dc.authorscopusid57212212810
dc.authorscopusid57212210561
dc.authorscopusid58615028100
dc.authorscopusid57212215269
dc.authorscopusid14521673500
dc.contributor.authorDüzgit, Z.
dc.contributor.authorKuzuoğlu, A.B.
dc.contributor.authorKalelioğlu, H.
dc.contributor.authorKolay, H.
dc.contributor.authorGüler, M.B.
dc.contributor.authorAkyol, S.
dc.contributor.authorToy, A.Ö.
dc.date.accessioned2024-07-18T20:16:36Z
dc.date.available2024-07-18T20:16:36Z
dc.date.issued2020
dc.description19th International Symposium for Production Research, ISPR 2019 -- 28 August 2019 through 30 August 2019 -- -- 233539en_US
dc.description.abstractThere are some factors to be considered while developing production planning policy of chocolate and chocolate-based products. One of these factors is that chocolate is a perishable food, therefore it has limited shelf life. Another factor is that; its demand is not always easy to forecast. Holidays, mothers’ day, teachers’ day, valentines’ day and new year are examples of the peak periods. For these special days, demand generally follows a seasonal demand pattern where seasonality may also contain trend for some specific product types. Moreover, there are two religious holidays (Ramadan Feast and Feast of Sacrifice) in Turkey whose dates shift each year. This phenomenon makes forecasts challenging. Underestimating demand causes loss of customer goodwill, lost customers and market share whereas overestimating demand causes excess inventory to keep in stock and risk of fat blooming. Accurate forecasting is critical since it provides a fundamental input for the production plan. The study is conducted in a chocolate company in Turkey. The company does not implement a systematic planning method for chocolate production, instead the planning is based on past experiences with respect to experts’ opinions. The objective of this study is to determine the optimal production and ending inventory levels for the period of 2018 so as to minimize total production and inventory holding cost subject to production, inventory and capacity related restrictions. A two-phase optimization method is adopted as a solution method. Firstly, a mathematical model is developed for the monthly aggregate production planning on product group basis. In order to solve the problem, monthly demand for product groups are forecasted based on the sales data of the previous two years. Secondly, a mathematical model for weekly disaggregate production planning is developed for each end item using the outputs of the aggregate planning as input. The disaggregate production plan gives the weekly planned production and inventory levels for end items for year 2018 with minimum deviation from the aggregate plan. Although the proposed solution model is implemented for year 2018, it can be used for the coming years by updating some parameters. © 2020, Springer Nature Switzerland AG.en_US
dc.identifier.doi10.1007/978-3-030-31343-2_15
dc.identifier.endpage181en_US
dc.identifier.isbn9783030313425
dc.identifier.isbn9789811509490
dc.identifier.issn2195-4356
dc.identifier.scopus2-s2.0-85076213137en_US
dc.identifier.scopusqualityQ4en_US
dc.identifier.startpage169en_US
dc.identifier.urihttps://doi.org/10.1007/978-3-030-31343-2_15
dc.identifier.urihttps://hdl.handle.net/11411/6186
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherSpringer Science and Business Media Deutschland GmbHen_US
dc.relation.ispartofLecture Notes in Mechanical Engineeringen_US
dc.relation.publicationcategoryKonferans Öğesi - Uluslararası - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectAggregate Production Planningen_US
dc.subjectDemand Forecastingen_US
dc.subjectDisaggregate Production Planningen_US
dc.subjectProduction Planningen_US
dc.subjectSeasonalityen_US
dc.subjectShelf Lifeen_US
dc.subjectAggregatesen_US
dc.subjectCompetitionen_US
dc.subjectForecastingen_US
dc.subjectPlanningen_US
dc.subjectProduction Controlen_US
dc.subjectAggregate Production Planningen_US
dc.subjectDemand Forecastingen_US
dc.subjectDisaggregate Production Planningen_US
dc.subjectInventory Levelsen_US
dc.subjectProduction And İnventoryen_US
dc.subjectProduction Planningen_US
dc.subjectProduction Plansen_US
dc.subjectSeasonalityen_US
dc.subjectShelf Lifeen_US
dc.subjectSalesen_US
dc.titleProduction Planning at a Chocolate Company: A Two-Phase Approach by Aggregation
dc.typeConference Object

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