Capacity Planning to Optimize the Profit of an Apparel Manufacturer in Developing Country

抄録

The export oriented apparel manufacturers of developing countries produce apparel on the make-to-order basis instead of make-to-sell. As a result, there is no chance of stockout of goods that could be sold or overstock that has to be liquidated at deep discount at the end of the period. But an analogy can be drawn between stock of goods and capacity of production as idle capacity or shortage of capacity exists frequently while matching capacity with orders obtained. Considering capacity as a resource in inventory to be used in the future this paper applies newsboy problem to decide its use in production.