Approach of Capacity Planning Through Linear Programming Technique: A Practice in Textile Enterprise

Ayhan YALÇINSOY 1  Mustafa Z?NC?RKIRAN2   Hidayet T?FT?K3

1 Dicle University, Diyarbak?r, Türkiye PhD Student in Dicle University

2 Dicle University, Diyarbak?r, Türkiye Assistant Professor  in Dicle University

3 Turgut Ozal University, Ankara, Türkiye, PhD Lecturer in Turgut Ozal University

MRPII 46

ABSTRACT 

This study aims to put forth the benefits of linear programming technique, which is one of the quantitative decision-making techniques, for the most efficient use of established business capacities.

In order to achieve this aim, capacity planning is carried out in a textile enterprise in Istanbul.  A market limitation model is developed for optimum use of capacity on the basis of the enterprise’s data of the last three years.

According to the model, it is determined that the cutting, ironing and packaging units of the enterprise operate with idle capacity and provide a profit of 29,618,370 Euros.

However, a new model has been developed and analyzed in order to ensure that the enterprise manufactures its own products, which are mainly sewed by contract manufacturing.

According to the proposed model, it is seen that the enterprise has doubled its profit by increasing it to 57,905,430 Euros. 

Keywords:

Linear Programming, Capacity Planning