Optimization of packing combination for production of silicone emulsion

Abstract

Company strategy is patented by the efficient use of resources at every production stage. The analysis and efficient utilization of resources are made sustainable by effective management decisions making techniques employed by the Company. A quantitative decision-making tool called linear programming can be used to the optimize problems of product combination. Chemical manufacturing firms are especially concern about silicone base profit mainly depends on the proper allocation and usage of available, material, and production time. With limited resources such as capital, production capacity and sales demand, production planning can be challenged in terms of determining which product to manufacture in each month of the financial period. The production planner needs to offer a minimum number of appropriate products by examining the product demand sequences and the purchased order received of every customer in each month. The proposed problem formulated for an optimization with conditional constraints based on integer linear programming establishes an approach for efficient product planning. The research out come advising process assisted by this optimization allows production planning to engage in an appropriate procurement requirement in every month. In this paper, optimum product combination determined by the mathematical model is validate considering the increase in profitability, and the justification of revision of packing size from customer point of view. The study also considers the revenue retention plan of the company by forecasting sales in scientifically in bootstrapping and simulation techniques. Finally, the model considers 64 combinations of productions mix in each month. Model quantitatively demonstrate that the optimum product combination can achieved in spite of several resource constraints.