Production Planning for a Winery With Mixed Integer Programming Model

Irfan Ertugrul () and Aysegul Tus Isik ()
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Irfan Ertugrul: Pamukkale University, Faculty of Economics and Administrative Sciences, Department of Business Administration
Aysegul Tus Isik: Pamukkale University, Faculty of Economics and Administrative Sciences, Department of Business Administration

Ege Academic Review, 2009, vol. 9, issue 2, 375-387

Abstract: This paper presents a Mixed Integer Programming (MIP) model to wine production planning. In a MIP problem, some of the decision variables are constrained to have only integer values at the optimal solution. The use of integer variables greatly expands the scope of useful optimization problems. The purpose of this paper is to propose a concise formulation of the production planning problem oriented at the food industry and in particular to wine production. The main idea is the selection of new products to be produced and the determination of the quantity of them in order to maximize profit of a winery. This is a fixed-charge problem and in this paper branch and bound method is used to solve the problem. The results obtained from a MIP model indicate that the selection of new products can favorably produce optimal schedules.

Keywords: Wine production planning; Mixed Integer Programming (MIP); Fixed-Charge problem; Branch and Bound method (search for similar items in EconPapers)
JEL-codes: L11 M11 (search for similar items in EconPapers)
Date: 2009
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