Abstract
Performance means achieving organizational objectives regardless of their nature and variety, and even overcoming them. Improving performance is one of the major goals of any company. Achieving the global performance means not only obtaining the economic performance, it is a must to take into account other functions like: function of quality, delivery, costs and even the employees satisfaction. This paper aims to improve the delivery performance of an industrial system due to their very low results. The delivery performance took into account all categories of performance indicators, such as on time delivery, backlog efficiency or transport efficiency. The research was focused on optimizing the delivery performance of the industrial system, using linear programming. Modeling the delivery function using linear programming led to obtaining precise quantities to be produced and delivered each month by the industrial system in order to minimize their transport cost, satisfying their customers orders and to control their stock. The optimization led to a substantial improvement in all four performance indicators that concern deliveries.
Highlights
Industrial systems performance plays a crucial role for their survival and maintaining on the market, given the fierce competition which led to the disappearance from the market of those who are not progressing and do not obtain high performance.The current economic environment is no longer confined to strictly economic performance targets, it requires a global vision of what the entity's performance really means. it is no longer sufficient an exclusively economic approach to assess the financial performance of an organization, it requires a global vision that may relate to product and processes quality, entity's costs, on time delivery of their products or even to employees satisfaction
It is no longer sufficient an exclusively economic approach to assess the financial performance of an organization, it requires a global vision that may relate to product and processes quality, entity's costs, on time delivery of their products or even to employees satisfaction
This paper presents below a study case of modeling and optimization the delivery performance of an industrial system by using linear programming
Summary
Industrial systems performance plays a crucial role for their survival and maintaining on the market, given the fierce competition which led to the disappearance from the market of those who are not progressing and do not obtain high performance.The current economic environment is no longer confined to strictly economic performance targets, it requires a global vision of what the entity's performance really means. it is no longer sufficient an exclusively economic approach to assess the financial performance of an organization, it requires a global vision that may relate to product and processes quality, entity's costs, on time delivery of their products or even to employees satisfaction. Delivery performance requires a special attention because it is closely related to customer satisfaction, the size of future orders, customer loyalty, and it may have a major implication on the revenue and expenses budget of the company. In this regard it is imperative to meet the precise quantities to be produced so that delivery is made on time, according to the customer orders, and at the same time the delivery fits in the planned transport costs. The major objective of this paper is to create a model for the delivery performance of an industrial system, a model that will help the managers to make the best decisions on production optimization
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