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Production Planning for a Winery With Mixed Integer Programming Model

Author

Listed:
  • Irfan Ertugrul

    (Pamukkale University, Faculty of Economics and Administrative Sciences, Department of Business Administration)

  • Aysegul Tus Isik

    (Pamukkale University, Faculty of Economics and Administrative Sciences, Department of Business Administration)

Abstract

This paper presents a Mixed Integer Programming (MIP) model to wine production planning. In a MIP problem, some of the decision variables are constrained to have only integer values at the optimal solution. The use of integer variables greatly expands the scope of useful optimization problems. The purpose of this paper is to propose a concise formulation of the production planning problem oriented at the food industry and in particular to wine production. The main idea is the selection of new products to be produced and the determination of the quantity of them in order to maximize profit of a winery. This is a fixed-charge problem and in this paper branch and bound method is used to solve the problem. The results obtained from a MIP model indicate that the selection of new products can favorably produce optimal schedules.

Suggested Citation

  • Irfan Ertugrul & Aysegul Tus Isik, 2009. "Production Planning for a Winery With Mixed Integer Programming Model," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 9(2), pages 375-387.
    • Handle: RePEc:ege:journl:v:9:y:2009:i:2:p:375-387
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    References listed on IDEAS

    as
    1. Alper Atamtürk & Martin Savelsbergh, 2005. "Integer-Programming Software Systems," Annals of Operations Research, Springer, vol. 140(1), pages 67-124, November.
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    More about this item

    Keywords

    Wine production planning; Mixed Integer Programming (MIP); Fixed-Charge problem; Branch and Bound method;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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