Review the allocation of production lines in shifts with minimising energy costs approach in Tehran Pegah Co

Morteza Hashemi, Sedaghat Shahmorad-Moghanloo and Davood Behboudi

International Journal of Operational Research, 2014, vol. 19, issue 1, 68-77

Abstract: Today, reducing production costs play an important role in marketing competition. Energy costs for product process and manufacturing is the major concern of production expenses. In this study, the production lines were allocated in shifts with minimum energy costs in Tehran Pegah Co. For this purpose, all data about energy consumption, production levels and staffs in Shahid Saemi factory of Tehran Pegah Co. were collected through interviews, documents, records and observations and considered as statistical sample. After extracting the costs of production lines, an integer linear programming model with an additional fixed cost to minimise the energy costs was designed for the factory. By solving this model, a weekly optimal production plan was extracted which tends to be more economical at the same production levels in every week of the first and second semesters by saving 4,314,110 and 44,559,712 Rials, respectively.

Keywords: energy carriers; production lines; mathematical programming; cost minimisation; shifts; optimisation modelling; production costs; energy costs; Iran; energy consumption; production levels; employees; production planning; case study. (search for similar items in EconPapers)
Date: 2014
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