PRODUCTION PLANNING IN THE FOOD INDUSTRY
Production planning at single or multiple sites typically concerns the fulfillment of specific requirements related to customer orders, stock constraints, supply chain long-term planning imperatives. This demanding task requires to combine manufacturing and inventory with expected products demand, and to co-ordinate all the activities taking into account the resources availability. The efficient arrangement of the entire process takes full advantage of the use of optimization models whom objective may include profit maximization or costs minimization.
Business need
Introduce an integrated logistic-production system.
Challenge
Co-ordinate production and packaging at each plant based on the end products demand profile and the related production capacity requirements.
Solution
Development of a large scale finite-capacity optimization model to generate optimal supply, production and primary distribution plans.
Benefits
Reduce the costs of the logistic system through the optimal allocation of the demand to the plants, consistent with the distribution plan to the markets. Reduce the cost for planning activities. Easily carrying out of what-if analysis in different scenarios in terms of production capacity, product demand variability, transportation and raw materials purchasing costs.