A model for planning and optimizing an engineering company production

Eduardo Gutiérrez González () and Olga Vladimirovna Panteleeva ()
Additional contact information
Eduardo Gutiérrez González: Instituto Politécnico Nacional
Olga Vladimirovna Panteleeva: Universidad Autónoma Chapingo

OPSEARCH, 2020, vol. 57, issue 3, No 2, 669-699

Abstract: Abstract This article presents a model to plan the annual production of pulleys and gray iron bushings in an engineering company. The proposed model considers sales forecasts and the use of finite mixture distributions to determine the behavior of class A sales items and best service levels. The forecast model parameters and finite mixture distribution sales are calculated via a Monte Carlo simulation. The model provides the annual production planning and inventory, minimizing fixed and variable production, inventory holding and penalty costs for noncompliance. The design is implemented with historical class A sales items, determining that the best service level is 95%. This model expects an additional annual profit of approximately $277,000 Mexican pesos.

Keywords: Finite mixture distributions; Maximum likelihood; Akaike information criterion (AIC); Service level; Default risk (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12597-019-00435-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:opsear:v:57:y:2020:i:3:d:10.1007_s12597-019-00435-7

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/12597

DOI: 10.1007/s12597-019-00435-7

Access Statistics for this article

OPSEARCH is currently edited by Birendra Mandal

More articles in OPSEARCH from Springer, Operational Research Society of India
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().