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Supply Chain Optimization and Planning in Heracles General Cement Company

Author

Listed:
  • George Dikos

    (Heracles General Cement Company, 190 02 Paiana, Attica, Greece)

  • Stavroula Spyropoulou

    (Heracles General Cement Company, 190 02 Paiana, Attica, Greece)

Abstract

Heracles General Cement Company, a member of Lafarge Group, is the largest producer of cement in Greece. In 2005, the corporation decided to improve the efficiency of its supply chain. To help manage this process, we developed a platform for supply chain optimization and planning (SCOP) using mathematical programming. Today, Heracles management uses SCOP to guide its supply chain operations, determine optimal operational response policies to fluctuations in demand and production, perform mid- and long-term planning, evaluate what-if scenarios, address network optimization problems, and identify the best tactics for implementing strategic decisions. SCOP has enabled Heracles to improve its global performance in supply chain management and achieve substantial savings at the operational and strategic levels.

Suggested Citation

  • George Dikos & Stavroula Spyropoulou, 2013. "Supply Chain Optimization and Planning in Heracles General Cement Company," Interfaces, INFORMS, vol. 43(4), pages 297-312, August.
    • Handle: RePEc:inm:orinte:v:43:y:2013:i:4:p:297-312
    DOI: 10.1287/inte.2013.0689
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    References listed on IDEAS

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    2. Nina Linn Ulstein & Marielle Christiansen & Roar Grønhaug & Nick Magnussen & Marius M. Solomon, 2006. "Elkem Uses Optimization in Redesigning Its Supply Chain," Interfaces, INFORMS, vol. 36(4), pages 314-325, August.
    3. Gerald Brown & Joseph Keegan & Brian Vigus & Kevin Wood, 2001. "The Kellogg Company Optimizes Production, Inventory, and Distribution," Interfaces, INFORMS, vol. 31(6), pages 1-15, December.
    4. Richa Agarwal & Özlem Ergun, 2008. "Ship Scheduling and Network Design for Cargo Routing in Liner Shipping," Transportation Science, INFORMS, vol. 42(2), pages 175-196, May.
    5. Chan K. Hahn & Edward A. Duplaga & Janet L. Hartley, 2000. "Supply-Chain Synchronization: Lessons from Hyundai Motor Company," Interfaces, INFORMS, vol. 30(4), pages 32-45, August.
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    Cited by:

    1. Lixin Tang & Feng Li & Zhi-Long Chen, 2019. "Integrated Scheduling of Production and Two-Stage Delivery of Make-to-Order Products: Offline and Online Algorithms," INFORMS Journal on Computing, INFORMS, vol. 31(3), pages 493-514, July.
    2. Amy David & David Farr & Ross Januszyk & Urmila Diwekar, 2015. "USG Uses Stochastic Optimization to Lower Distribution Costs," Interfaces, INFORMS, vol. 45(3), pages 216-227, June.

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