1. To optimize the production plan of a two wheeler
manufacturing company having 3 plants and 4
production lines per plant in order to maximize its
profit
abstract
• Hero MotoCorp Ltd. (Formerly Hero Honda
Motors Ltd.) is the world's largest
manufacturer of two-wheelers, based in India.
• It has 3 globally benchmarked manufacturing
facilities. Two of these are based at Gurgaon
and Dharuhera which are located in the state
of Haryana in northern India. The third
manufacturing plant is based at Haridwar, in
the hill state of Uttrakhand.
• It has 4 production lines per plant and 13
different motorcycle models in demand.
• This project will provide the production plan
for 13 different two wheeler models produced
by Hero MotoCorp, in order to maximize the
profit.
• Finding the optimized production plan which
satisfies the demand and each assembly line
will be loaded equally.
DATA OBTAINED FROM COMPANY
GIVEN PLANT CAPACITIES
mathematical MODEL
Decision Variables:
• x111 = No. of Splendor produced on Line 1 of Plant 1
• x121 = No. of Splendor produced on Line 2 of Plant 1
• x131 = No. of Splendor produced on Line 3 of Plant 1
• x141 = No. of Splendor produced on Line 4 of Plant 1
• x112 = No. of Splendor+ produced on Line 1 of Plant 1
• x122 = No. of Splendor+ produced on Line 2 of Plant 1
• x132 = No. of Splendor+ produced on Line 3 of Plant 1
• x142 = No. of Splendor+ produced on Line 4 of Plant 1
Generalized form:
• Xijk = No. of Motorbike Model ‘k’ produced on Line ‘j’ of Plant ‘i’
Here we will be maximizing the profit for Hero Moto Corp. based on the production capacity
of different plants.
Maximize Z = 3000 (∑xij1) +2000 (∑xij2) +1200 (∑xij3) +1210 (∑xij4) +1100 (∑xij5) +4200
(∑xij6) +5000 (∑xij7) +2400 (∑xij8) +5350 (∑xij9) +5740 (∑xij10) +3550 (∑xij11) +4500
(∑xij12)+ 2130 (∑xij13)
• Where ∑xijk : Total number of Model ‘k’ produced at all the locations
Constraints :
Objective function & Constraints
1. Demand Constraints (1 to 13): Total number of motorbikes produced of a particular model
(splendor, passion, ZMR, etc) should be greater than or equal to its market demand.
x111+x121+x131+x141+x211+x221+x231+x241+x311+x321+x331+x341 ≥ 40000 (For Splendor)
Similarly,
∑Xij2 ≥ 100000 (For Splendor +)
∑Xij3 ≥ 40000 (For Splendor Pro)
∑Xij4 ≥ 80000 (For Passion +)
2. Plant Capacity Constraints (14 to 16): Each plant has its different capacity of producing number
of motorbikes per month.
∑X1jk ≤ 251687 (For Plant 1)
∑X2jk ≤ 234040 (For Plant 2)
∑X3jk ≤ 186476 (For Plant 3)
3. Production Line Constraints (17 to 28): Each production line of each plant has different capacity
of production per month.
X11k+X21k+X31k ≤ 206796 (Line 1 of all 3 plants)
X12k+X22k+X32k ≤ 185370 (Line 2 of all 3 plants)
X13k+X23k+X33k ≤ 173277 (Line 3 of all 3 plants)
X14k+X24k+X34k ≤ 106760 (Line 4 of all 3 plants)
4. Maximum Finished Inventory Constraint (29 to 41): Maximum number of motorbikes of a
particular model that can be produced. It should not be greater than 110% of demand.
x111+x121+x131+x141+x211+x221+x231+x241+x311+x321+x331+x341 ≤ 44000 (For Splendor)
Similarly,
∑Xij2 ≤ 110000 (For Splendor +)
∑Xij3 ≤ 44000 (For Splendor Pro)
∑Xij4 ≤ 88000 (For Passion +)
5. Individual Line constraint (42 to 53): Individual production line of each plant has different
capacity of production depending of the cycle time of various motorbike model.
6. Integer Constraint : All values has to be integer since we are talking about ‘Number’ of
Motorbikes.
results
conclusion
A. Total Production of Gurgaon Plant: 251687 Motorbikes
B. Total Production of Dharuhera Plant: 234040 Motorbikes
C. Total Production Haridwar Plant: 186476 Motorbikes
D. Total Production : 672203 Motorbikes (Per Month)
Now we have total production plan of all 13 Models of Bike with maximum profit
for a given demand and plant capacities.
Department of Industrial Engineering
References
1. https://en.wikipedia.org/wiki/Hero_MotoCorp
2. http://www.heromotocorp.com/en-in/