Aggregate planning using transportation method.

MRPII 80

AGGREGATE PLANNING USING TRANSPORTATION METHOD: A CASE STUDY IN CABLE INDUSTRY

MstNazma Sultana1, Shohanuzzaman Shohan2, Fardim Sufian3

1Lecturer, Department of Industrial Engineering and Management Khulna University of Engineering & Technology, Khulna-9203,BANGLADESH

2Department of Industrial Engineering and Management Khulna University of Engineering & Technology, Khulna-9203,BANGLADESH 3Department of Industrial Engineering and Management Khulna University of Engineering & Technology, Khulna-9203,BANGLADESH

ABSTRACT

Aggregate planning is an analytical tool that proposes a strategy to meet demand according to the capacity constraints. In this paper, aggregate planning strategies are discussed and a special structure of transportation model is investigated for the aggregate planning purpose of “Bangladesh Cable Shilpa Ltd, Khulna”.  For this transportation problem, all the unit costs, supplies, demands & other values are taken from a case study. The forecasting demand values are determined using Single Exponential Smoothing Forecasting technique. Transportation model & the Transportation algorithm is discussed in this paper. A real life unbalanced transportation problem is discussed and solved to bring the most efficient technique of reducing transportation and storage cost. Vogel Approximation Method (VAM) algorithm is also discussed & used to determine the starting solution of the transportation model. Finally, TORA software is used to find the optimum cost by using transportation method.

KEYWORDS  

Aggregate planning, Transportation model, Vogel Approximation Method (VAM), TORA transportation.