ADVANCED APPAREL MANUFACTURING MANAGEMENT {FINAL SUBMISSION} SUBMITTED TO :MS. NILIMA R.TOPNO SUBMITTED BY : ARYAN RATHORE (BFT/18/519) KOMAL PRIYA (BFT/18/563) АСKNОWLEDGMENT The соmрletiоn оf this аssignment gives us muсh Рleаsure. We wоuld like tо shоw оur grаtitude tо our Аsst. Рrоfessоr Ms. Nilima Regina Topno, NIFT fоr giving us а gооd guideline fоr аssignment аnd соnsultаtiоns. He intrоduсed us tо the Methоdоlоgy оf wоrk, аnd whоse раssiоn fоr the “underlying struсtures” hаd lаsting effeсt. We wоuld аlsо like tо exраnd our deeрest grаtitude tо аll thоse whо hаve direсtly аnd indireсtly guided us in writing this аssignment. We аlsо thаnk the University оf NIFT fоr соnsent tо inсlude this tорiс аs а раrt оf our рарer. Mаny рeорle, esрeсiаlly our сlаssmаtes, hаve mаde vаluаble соmment suggestiоns оn this рrороsаl whiсh gаve аn insрirаtiоn tо imрrоve our аssignment. We thаnk аll the рeорle fоr their helр direсtly аnd indireсtly tо соmрlete our аssignment. APPLICATION OF OPERATION RESEARCH IN GARMENT INDUSTRY OR reflects an analytical method of problem solving and decision-making that is useful in the management of organizations of fashion industry. OR improves the effectiveness and the efficiency of an institution, hence some of the benefits offered by OR include: Decrease Cost or Investment Increase Revenue or Return on Investment Increase Market Share Manage and Reduce Risk Improve Quality Increase Throughput while Decreasing Delays Achieve Improved Utilization form Limited Resources Demonstrate Feasibility and Workability OR Functions and Methods: OR supports the key decision making process, allows to solve urgent problems, can be utilized to design improved multistep operations (processes), setup policies, supports the planning and forecasting steps, and measures actual results. Application of OR in Fibre and Fabric Industry OR applications include : Scheduling, routing, workflow improvements, elimination of bottlenecks, inventory control, business process re-engineering, site selection, or facility and general operational planning. Revenue and supply chain management reflect two growing applications that are distinguished by their use of several OR methods to cover several functions. Revenue management entails first to accurately forecasting the demand, and secondly to adjust the price structure over time to more profitably allocate fixed capacity. Supply chain decisions describe the who, what, when, and where abstractions from purchasing and transporting raw materials and parts, through manufacturing actual products and goods, and finally distributing and delivering the items to the customers. Application of OR is useful in various department of garment manufacturing organizations In cutting department cut scheduling problem concerns finding a feasible cutting schedule having the minimum number of lays. The availability of multiple solutions allows greater flexibility and permits decision makers to apply additional criteria in selecting an appropriate cutting schedule. A hybrid flowshop (HFS) problem on the pre-sewing operations and a master production scheduling (MPS) problem of apparel manufacture are solved by a proposed twotier scheduling model. OR helps to plan a MPS for the factory so that the costs are minimized when the production orders are completed before and after the delivery dates required by the customers and it also helps to minimize the completion time of the pre-sewing operations in the cutting department while the production quantities required by the sewing department at several predetermined times can be fulfilled by the cutting department. OR projects focus on the industrial deployment of computer-based methods for assembly line balancing, business process reengineering, capacity planning, pull scheduling, and setup reduction, primarily through the integration of the philosophies of the Theory of Constraints and Lean Manufacturing. The main benefits are : Defects and wastage - Reduce defects and unnecessary physical wastage, including excess use of raw material (inputs), preventable defects, costs associated with reprocessing defective items, and unnecessary product characteristics which are not required by customers Cycle Times - Reduce manufacturing lead times and production cycle times by reducing waiting times between processing stages, as well as process preparation times and product/model conversion times Inventory levels - Minimize inventory levels at all stages of production, particularly works-in-progress between production stages. Lower inventories also imply lower working capital requirements Labor productivity - Improve labor productivity, both by reducing the idle time of workers and ensuring that when workers are working, they are using their effort as productively as possible Utilization of equipment and space - Use equipment and manufacturing space more efficiently by eliminating bottlenecks and maximizing the rate of production though existing equipment, while minimizing machine downtime Flexibility - Have the ability to produce a more flexible range of products with minimum changeover costs and changeover time Output – In regards to reduced cycle times, increased labor productivity and elimination of bottlenecks and machine downtime can be achieved. Application of OR in Retail Industry In the retail industry application of OR is as follows: ROI Maximization: The retailers try to know “the number of units to build in a particular DMA to maximize return on total investments within that DMA. In such situation the optimization model would need to consider the variables like warehousing, distribution, and supply chain costs, overhead, operating costs, media advertising costs, positioning, marketing strategy, the breadth and depth of merchandise , real estate and construction costs, employee training and sharing efficiencies among the stores etc. Optimal Distribution System: Transportation models, inventory models, and advertising response models is used to get optimal distribution system. INTRODUCTION TO LINEAR PROGRAMMING • Linear Programming (LP) is a mathematical modelling technique useful for allocation of limited resources such as material, machines etc. to several competing activities such as projects, services etc. • A typical linear programming problem consists of a linear objective function which is to be maximized or minimized subject to a finite number of linear constraints. It may be defined as the problem of maximizing or minimizing a linear function that is subjected to linear constraints. The constraints may be equalities or inequalities. The optimization problems involve the calculation of profit and loss. Linear programming problems are an important class of optimization problems that helps to find the feasible region and optimize the solution in order to have the highest or lowest value of the function. In other words, linear programming is considered as an optimization method to maximize or minimize the objective function of the given mathematical model with the set of some requirements which are represented in the linear relationship. The main aim of the linear programming problem is to find the optimal solution. Linear programming is the method of considering different inequalities relevant to a situation and calculating the best value that is required to be obtained in those conditions. Some of the assumptions taken while working with linear programming are: The number of constraints should be expressed in the quantitative terms The relationship between the constraints and the objective function should be linear The linear function (i.e., objective function) is to be optimized CHARACTERISTICS OF LINEAR PROGRAMMING The following are the five characteristics of the linear programming problem: 1. Constraints – The limitations should be expressed in the mathematical form, regarding the resource. 2. Objective Function – In a problem, the objective function should be specified in a quantitative way. 3. Linearity – The relationship between two or more variables in the function must be linear. It means that the degree of the variable is one. 4. Finiteness – There should be finite and infinite input and output numbers. In case, if the function has infinite factors, the optimal solution is not feasible. 5. Non-negativity – The variable value should be positive or zero. It should not be a negative value. 6. Decision Variables – The decision variable will decide the output. It gives the ultimate solution of the problem. For any problem, the first step is to identify the decision variables. REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM 1. There must be a well-defined objective function (profit, cost or quantities produced) which is to be either maximized or minimized and which can be expressed as a linear function of decision variables. 2. There must be constraints on the amount or extent of attainment of the objective and these constraints must be capable of being expressed as linear equations or inequalities in terms of variables. 3. There must be alternative courses of action. For example, a given product may be processed by two different machines and problem may be as to how much of the product to allocate to which machine. 4. Another necessary requirement is that decision variables should be interrelated and nonnegative. The non-negativity condition shows that linear programming deals real life situations for which negative quantities are generally illogical. 5. As stated earlier, the resources must be in limited supply. For example, if a firm starts producing greater number of a particular product, it must make smaller number of other products as the total production capacity is limited. LINEAR PROGRAMMING APPLICATIONS A real-time example would be considering the limitations of labors and materials and finding the best production levels for maximum profit in particular circumstances. It is part of a vital area of mathematics known as optimization techniques. The applications of LP in some other fields are Engineering – It solves design and manufacturing problems as it is helpful for doing shape optimization Efficient Manufacturing – To maximize profit, companies use linear expressions Energy Industry – It provides methods to optimize the electric power system. Transportation Optimization – For cost and time efficiency. IMPORTANCE OF LINEAR PROGRAMMING Linear programming is broadly applied in the field of optimization for many reasons. Many functional problems in operations analysis can be represented as linear programming problems. Some special problems of linear programming are such as network flow queries and multicommodity flow queries are deemed to be important to have produced much research on functional algorithms for their solution. INTRODUCTION TO TRANSPORT PROBLEM Objective The Objective of transportation problem is to determine the amount to be transported from each origin to each destinations such that the total transportation cost is minimized. Limitation Total Supply from each store should not exceed the capacity of that store and total actual demand of each warehouse should be met.The transportation problem is one of the subclasses of LLPs (Linear Programming Problems) in which goods are transported from a set of sources to a set of destinations subject to the supply and demand of the sources and destination, respectively, such that the total cost of transportation is minimized. There are two types of Transportation Problem: • Balanced (Total Demand=Total Supply) • Unbalanced (use of dummy stores for calculations) Warehouses play a vital role in mitigating variations in supply and demand, and providing value-added services in a supply chain. However, our observation of supply chain practice reveals that warehousing decisions are not included when developing a distribution plan for the supply chain. This lack of integration has resulted in substantial variation in workload (42%-220%) at our industry partner’s warehouse costing them millions of dollars. We address this real-world challenge by investigating the interdependencies between warehouse, inventory, and transportation decisions, integrate them in a mathematical programming model, and develop managerial insights based on solutions of industry-sized problem instances. Our three contributions to research in supply chain are as follows. First, we introduce the warehouse-inventory-transportation problem (WITP), which determines the optimal distribution strategy from vendors to customers via one or more warehouses in order to minimize total distribution costs. We model WITP as a nonlinear integer programming model considering multiple vendors, stores, products, and time-periods, and one warehouse. The model also considers worker congestion at the iv warehouse that could affect worker productivity. Our experiments indicate that the distribution plans obtained via the WITP, as compared to a sequential approach of solving an integrated inventory-transportation problem first and then solving the warehousing problem, result in a substantial reduction in workload variance at the warehouse, while considerably reducing the total distribution cost. These plans, however, are sensitive to the aisle configuration and technology at the warehouse, and the level and productivity of temporary workers. It searches for a better solution in two alternating phases, a local search phase and a perturbation phase. Second, to solve industry-sized problems, we developed a heuristic framework. This framework incorporates key features from the well-established Iterated Local Search (ILS) meta-heuristic. The heuristic implements three sets of neighborhood moves intended to improve warehousing, inventory, and transportation costs. It searches for a better solution in two alternating phases, a local search phase and a perturbation phase. We found that the solutions from the heuristic were close to optimal on small problem instances. Additionally, the heuristic was able to solve efficiently industry-sized problems with up to 500 stores and 1,000 products. Third, we extend the WITP to model distribution decisions for supply chains that manage the flow of products with varying life cycles. The varying demand patterns of such products (e.g., basic and fashion) require different sets of decisions with different objectives; cost-efficiency for basic products and time-effectiveness for fashion products.