Modeling the Best Policy in Production Planning of Pegah Pasteurized Milk Company of East Azerbaijan Using a System Dynamics Approach to Reduce Production Cost

Document Type : Research Paper

Authors

1 M. A. student, Department of Industrial Engineering, Faculty of Engineering, Tabriz Branch, Islamic Azad University, Tabriz, Iran

2 Assistant Professor, Department of Industrial Engineering, Faculty of Engineering, Tabriz Branch, Islamic Azad University, Tabriz, Iran

Abstract

Production planning in a production system analyzes and calculates the amount of production of each of the products that can be produced in a production system in the future based on market conditions and conditions, customer needs, supply chain of raw materials, etc., and its purpose is to reduce production costs, maintaining or increasing customer satisfaction, competition in the market, diversification of manufactured products, etc. Several methods have different characteristics when preparing the production plan, and the appropriate method is chosen depending on the type of production system and the conditions governing it. This research deals with preparing the dairy product production plan of Pegah pasteurized milk company in East Azerbaijan to reduce production costs; using the system dynamics approach to prepare this plan, the influential factors in preparing the production plan and their mutual effects on each other were studied. Commented. For this purpose, the cause-effect model of these factors has been prepared, and its flow chart has been simulated in Vensim software with four different scenarios. The simulation results show that the best situation for the factory and society is to encourage the increase or continuation of the consumption of dairy products, which reduces total costs by 12%. Otherwise, with the increase in product prices and decrease in consumer demand, the factory should keep the variety of manufactured products constant and reduce the production volume of each product.

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References

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Journal of Industrial Engineering Research in Production Systems
Volume 11, Issue 23
March 2024
Pages 57-69

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