Optimal Production Planning Strategies for Global CPG Company
Name
Sakr_Capstone_Optimal Production Planning Strategy for Global CPG Company.pdf
Description
Supply Chain Management capstone research project
Size
1.62 MB
Format
Adobe PDF
Checksum (MD5)
40b0b281854c84ce734fae725864c519
Author(s)
Sakr, Omar Mahmoud
Date Issued
June 16, 2021
Abstract
Companies in the Consumer-Packaged Goods Industry are faced with a chronic dilemma: efficiency vs. agility. Companies must find the balance between scale, which creates cost-saving opportunities, and flexibility, which often incurs incremental costs. The main questions addressed in this capstone pertain to manufacturing and logistics decisions. Simply put, how much should the company produce, when and how, and therefore how much inventory should they hold? Following extensive cost structure analysis and mapping of the company’s supply chain network, a comprehensive Mixed Integer Linear Programming model was created. The model’s objective function is cost minimization, which it must attempt considering “current-state” inputs as well as multiple operational constraints. The results suggest that a hybrid production planning strategy between “level-production” and “demand-chase” is preferred, and can generate significant cost savings across the supply chain. In summary, this strategy can help companies enhance their efficiency and reduce costs when attempting to optimize total end-to-end supply chain costs, instead of using department-based budget management.
Subjects
Data Analytics
Production Planning
Supply Chain Strategy
Terms of Use
CC0 1.0 Universal
Persistent DSpace Link
