Integrated Production and Distribution Planning in Multi-Product Dairy Supply Chains

ARMANDO GUARNASCHELLI; HECTOR ENRIQUE SALOMONE

Glasgow

Conferencia; 27th European Conference on Operational Research EURO 2015; 2015

The Association of European Operation Research Societies

In this work the production and distribution planning for a real-world dairy supply chain is addressed. A planning model is proposed to account for production and distribution of Cheese, Yogurt, Powdered Milk and UHT Milk product families across a two stage Supply Chain.The model encompasses the activities of raw milk processing into dairy products through the definition of production campaigns and balances the utilization of raw milk supply between different product families.Distribution of products is done through a set of nine distribution centers, the model defines replenishment and truck shipments of products for each of them. As raw milk, yogurt and cheese are refrigerated and have relatively short shelf-life, a special modeling approach is used to account for it at factory and distribution centers inventories. As the numbers of SKUs grows, the complexity of the model grows as well, therefore a solving strategy is included. Finally, a case study for validation and illustration of the features of the planning model is presented.