Optimization of Production Scheduling at IKEA Industry Hultsfred

Abstract: IKEA Industry has factories in several locations where one location is in Hultsfred, Småland. IKEA Industry Hultsfred produces IKEA:s wardrobe collection PAX. In 2018, 2.8 million wardrobes were manufactured in Hultsfred. This thesis covers the subject of constructing and developing an optimization model which has the same characteristics as the plinth production at IKEA Industry Hultsfred. This means that the optimization model must consider production sequence; the setup time is different depending on which products that have been produced in the machine earlier. The thesis also covers to investigate how much time that is necessary to produce the plinths to Hultsfred, Portugal, and Germany under different circumstances. This thesis also balances inventory levels and setup time. I.e., how the inventory levels are changed if more emphasis is put into minimizing setup time, and the other way around. The results show that lower inventory levels and setup times are achievable over seven days if the production planning technique is changed.