An Application of Mixed-Integer Linear Programming Method in Production Planning of Pipe Industry

Different types of pipes are used in various industries, and linear programming of pipe production is an effective subject in this industry. Especially, efficient planning in operational level leads to reduce total cost and improves competitiveness. In this paper, the mixed integer linear programming (MILP) approach is applied for operational planning of pipe production in different periods. To provide, moreover, a mathematical model for the manufacturing line, the model which is described in this study can choose the best supplier among a variety of suppliers. This model also optimizes the amount of raw materials acquired from suppliers as well as the amount of final product manufacturing, reducing final product and raw material inventory level in the factory. The final product inventory level, raw material inventory level, manufacturing capacity, supplier and warehouse capacity for keeping the final product and raw materials are also taken into account. The model is applied in a case study in GRP pipe production plants in Turkey.