Improvement of capacity utilization in a subcontracting small scale manufacturing company

In this study, a goal programming model is proposed for the improvement of capacity utilization in a subcontracting small scale manufacturing company. This is a suburban Istanbul manufacturing company that produces certain final and intermediate products for a few large scale animal health companies. The company operates two production lines and produces different kinds of veterinary drugs and feed additives. Because this is a small scale company, it has the flexibility of reducing production costs as low as possible and also operating at a low profitability level. The utilization of production capacity is low. The company aims to increase profitability by increasing the production capacity to higher utilization levels.