A Production Planning Optimization Model for Maximizing Battery Manufacturing Profitability

This paper presents an integer programming (IP) model for production planning, which is used to maximize the profitability of battery manufacturing in a mid-size company. Battery production is a complicated multi-stage process. The formation stage, during which the batteries are filled with acid and...

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Published inInternational journal of applied industrial engineering Vol. 1; no. 1; pp. 55 - 63
Main Author Alfares, Hesham K
Format Journal Article
LanguageEnglish
Published Hershey IGI Global 01.01.2012
Subjects
Batteries
Battery industry
Charging
Integer programming
Manufacturing
Optimization models
Production planning
Profitability
Small and medium sized companies
Saudi Arabia
Online AccessGet full text
ISSN2155-4153
2155-4161
DOI10.4018/ijaie.2012010105

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Abstract This paper presents an integer programming (IP) model for production planning, which is used to maximize the profitability of battery manufacturing in a mid-size company. Battery production is a complicated multi-stage process. The formation stage, during which the batteries are filled with acid and charged with electricity, is considered to be the bottleneck of this process. The IP model maximizes the total profit of batteries produced in the formation stage, subject to limited manufacturing resources as well as time limitations and demand restrictions. The IP model is able to accommodate a large variety of battery models and sizes, and also different charging circuit capacities and speeds. The model is formulated and optimally solved using Microsoft Excel Solver. Compared to the current manual production planning approach, the optimum IP-generated production plans lead to an average increase of 12% in daily profits.
AbstractList This paper presents an integer programming (IP) model for production planning, which is used to maximize the profitability of battery manufacturing in a mid-size company. Battery production is a complicated multi-stage process. The formation stage, during which the batteries are filled with acid and charged with electricity, is considered to be the bottleneck of this process. The IP model maximizes the total profit of batteries produced in the formation stage, subject to limited manufacturing resources as well as time limitations and demand restrictions. The IP model is able to accommodate a large variety of battery models and sizes, and also different charging circuit capacities and speeds. The model is formulated and optimally solved using Microsoft Excel Solver. Compared to the current manual production planning approach, the optimum IP-generated production plans lead to an average increase of 12% in daily profits.
Audience Academic
Author Alfares, Hesham K
AuthorAffiliation King Fahd University of Petroleum & Minerals, Saudi Arabia
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Copyright COPYRIGHT 2012 IGI Global
Copyright © 2012, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
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SubjectTerms Batteries
Battery industry
Charging
Integer programming
Manufacturing
Optimization models
Production planning
Profitability
Small and medium sized companies
Title A Production Planning Optimization Model for Maximizing Battery Manufacturing Profitability
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