Aggregate Production Planning, Casestudy in a Medium-sized Industry of the Rubber Production Line in Ecuador

Abstract

This research aims to improve the productivity in the rubber line of a medium-sized industry by increasing the production capacities through the use of the Aggregate Production Planning model. For this purpose an analysis of the production processes of the line was made and the aggregate plan was defined evaluating two strategies: Exact Production Plan (Zero Inventory) and Constant Workforce Plan (Vary Inventory) by studying the costs of both inventory maintenance and workforce. It was also determined how the installed capacity was used with the standards of the rubber line and measures for decreasing production costs were proposed. It was proven that only 70% of the plant capacity was being used so it could be possible to produce more units and to obtain a bigger market for the products of this line.+