| Summary: | 碩士 === 中原大學 === 國際經營與貿易研究所 === 107 === This study proposes a scientific approach to building a linear programming model for a copper alloy manufacturing company. It aims to offer an optimal annual production plan to minimize production costs, taking into account the constraints of production capacity and inventory. Without a stipulated production schedule, workers would generally choose products with simpler production processes to produce, or alternatively, the on-site supervisor would arrange production lines by forecasting future market demand based on his/her experience. However, these unscientific decisions always result in either over- or underproduction, which in turn leads to unnecessary labor and storage costs. According to linear programming, the arrangement of production lines must first fulfill the monthly order requirements. If there is idle capacity during low seasons, then production could be increased to build up inventory for peak seasons when there may be too many orders to handle.
The company’s slitting and packaging departments presently have a production cost of up to NT$716.04 million. If linear programming is adopted as suggested in this study, the total cost could be lowered to NT$631.13 million. The savings would originate from reduced production, which implies reduced expenses in raw materials, labor, packaging materials, and production processes. Annual labor time decreases from 1.22 million minutes to 1.06 million minutes, whereas production also decreases from 555 rolls to 486 rolls, which is still within the safe inventory range. This not only reduces production costs, but also alleviates the company’s stress in personnel management, and the cost of inventory space.
To summarize, this study designed a simple and convenient model for setting up a clear annual production plan, which can be used to prepare a work schedule ahead of time. This allows process outsourcing to be considered in advance when there is a labor shortage, lowering the instability of the production, maintaining product supply, satisfying customers’ needs, and simultaneously boosting the company’s revenue.
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