LAPSE:2022.0008
Published Article
LAPSE:2022.0008
Optimal Production and Inventory Policy in a Multiproduct Bakery Unit
Belmiro P. M. Duarte, André M. M. Gonçalves, Lino O. Santos
January 24, 2022
The problem of finding optimal production and inventory policies is crucial for companies of the food industry, especially those processing multiple products. Since companies are required to adopt the most efficient solutions to prosper, the operation at these optimal conditions can have an extensive impact on profit, resource allocation and product quality. We address the problem of finding the optimal production and inventory policy in a multiproduct bakery unit for two contexts: (i) deterministic consumption without inventory control; and (ii) stochastic consumption combined with delayed inventory control. A formulation is proposed for each of these two setups. The restrictions considered in the model framework are related to workforce availability, and the cost structure includes four components: (i) production cost; (ii) inventory cost; (iii) setup cost; and (iv) the cost due to the degradation of perceived quality. The problem is formulated as a Mixed Integer Linear Programming one and solved with a branch and cut algorithm-based solver. The formulation is applied to a real bakery unit producing a mix of eight products. Distinct demand and inventory lower levels are used for building scenarios to test both models and characterize the economic performance of the multiproduct bakery unit.
Keywords
food processing unit, inventory policy, multiproduct plant, optimal production policy
Suggested Citation
Duarte BPM, Gonçalves AMM, Santos LO. Optimal Production and Inventory Policy in a Multiproduct Bakery Unit. (2022). LAPSE:2022.0008
Author Affiliations
Duarte BPM: Department of Chemical and Biological Engineering, Coimbra Engineering Academy, Polytechnic Institute of Coimbra, Rua Pedro Nunes, Quinta da Nora, 3030-199 Coimbra, Portugal; Centro de Investigação em Engenharia dos Processos Químicos e dos Produtos da [ORCID]
Gonçalves AMM: Department of Chemical and Biological Engineering, Coimbra Engineering Academy, Polytechnic Institute of Coimbra, Rua Pedro Nunes, Quinta da Nora, 3030-199 Coimbra, Portugal
Santos LO: Centro de Investigação em Engenharia dos Processos Químicos e dos Produtos da Floresta, Department of Chemical Engineering, University of Coimbra, Rua Sílvio Lima, Pólo II, 3030-790 Coimbra, Portugal [ORCID]
Journal Name
Processes
Volume
9
Issue
1
First Page
pr9010101
Year
2021
Publication Date
2021-01-05
Published Version
ISSN
2227-9717
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Original Submission
Other Meta
PII: pr9010101, Publication Type: Journal Article
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LAPSE:2022.0008
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doi:10.3390/pr9010101
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Jan 24, 2022
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CC BY 4.0
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[v1] (Original Submission)
Jan 24, 2022
 
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Jan 24, 2022
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Original Submitter
Calvin Tsay
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