A resource allocation problem with the aid of an inter zero-one programming model in the plastics industry

This article represents an integer zero-one linear programming model which gives an optimal solution to a cost problem that determines the division of products in the plastics industry using the injection method. The structure of the model and its limitations will be studied, and the efficiency of the model by analyzing a real case illustrated. The case concerns the plastics factories of Kibbutz Ruchama in Israel. The problem is to select the mold injection machine and the size of the mold that will be used for the production of a given product and its parts, when the demand for production or the size of the production series is a parameter that is determined exogenously vis-à-vis the production layout, according to market demands. The cyclical production process uses various raw materials, injection molding machines, auxiliary equipment and manpower to produce the final product. The example that was studied was characterized by ‘economies of scale.’ Indeed, the reduction in unit cost turned out to be almost linearly related to the size of the production series.