Integrated planning of production and distribution in a tactical level in a glass container producing company

Challenge

Production and distribution plans for over one year in less than 15 minutes

Approach

Prescriptive Optimization Analytics

Results

Wider and deeper visibility of deficits and surplus of capacity

Opportunity

Company A has lost in the past several commercial opportunities due to a poor resource allocation coming from a misleading planning process. In the process industries, a lost minute in a setup may represent several thousand euros due to material consumption and cause delays in the deliveries. Thus it is crucial to foresee and plan the future operations to be sure that limited resources are explored at their full potential.

After years of growth, Company A was facing rising difficulty in assigning markets to factories and planning at the medium-long term the overall stock fluctuations. Clearly, this challenging problem called for a process integration from production to inventory and transportation planning.

LTPlabs helped Company A in achieving such excellence.

Results

Through a mathematical programming based approach, LTPlabs is able to deliver to this client a continued service that guides the overall supply chain planning with an integrated perspective.

Nowadays within less than 15 minutes, Company A is able to run what-if analysis, optimize current production and distribution plans for over one year and dive into the forecasted performance indicators.

Complete reports on the best solutions to be taken are generated and a comprehensive set of indicators made available: delay, lost sales, color setups, process setups, transportation costs and inventory levels.

Results achieved in 2 months