Aggregate production planning: an application in Özkaşıkçı Flour Mill

Abstract

Aggregate planning is medium-range capacity planning that typically covers a time horizon of anywhere from 3 months to 18 months. The goal of aggregate planning is to achieve a feasible production plan that will effectively utilize the organization’s resources to satisfy expected demand. In this study. Aggregate Production Planning is applied to 0zka?ik9i Flour Mill in order to maximize the total profit by using the optimal allocation of export and domestic sales to the plant capacity. A nonlinear programming (NP) model is developed and the proposed model is run on GAMS (General Algebraic Modeling System) software package. Alternative scenarios are applied to the model in order to find optimal allocation of export and domestic production and to maximize the total profit.