Optimized model formulation through product mix scheduling for profit maximization in the apparel industry

Abstract

Nowadays modern apparel industry encounters numerous challenges, including the dynamic nature of the market and the increasing customer demand for product variety. This drives fashion industries to diversify their product range, intensifying competition and leading to the production of a wide range of products in a single factory. Hence, implementing a systematic method and/or model to ascertain optimal product mix combinations within a garment factory becomes pivotal for informed decision-making. The current research aims to formulate a model to manage the available resources and improve overall operational efficiency through optimal product mix and production scheduling. The case study took place at CBA Garments Factory PLC in Ethiopia, which aimed to produce multiple garments but ultimately manufactured only one product at a time. The research employed quantitative research through analyzing data, general sewing data system, utilizing sequencing and scheduling approaches, and employing simple integer linear programming modeling tools. Based on the result, the newly developed optimized model enabled the case company to produce an average of four product types to fulfil multiple orders and increase resource utilization from 19.6% to an average of 73%.