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Plant Loading and Dispatch Planning

In: Applications of Operations Research and Management Science

Author

Listed:
  • G. S. R. Murthy

    (Indian Statistical Institute)

Abstract

This case study deals with a project carried out for a cement company. The company has six production plants and a large stockists base. The company produces different types of cement and sells it under a number of brands. The company wanted a logistics software that helps them in production planning and dispatches on a monthly basis. The main objective of the company was to do this planning in such a way that the contribution – a measure of profit – by way of determining optimal production and dispatch plans. But the problem is that the sale prices of cement are subject to fluctuations and cannot be known at the time of planning. An important discovery of this project is that the optimal solutions can be obtained even without knowing the sale prices. Further, it is shown that substantial reduction in the size of the problem can be achieved by exploiting the special structure of the problem. The problem involves a number and variety of constraints. This case study should help in handling large scale projects and building confidence in doing so.

Suggested Citation

  • G. S. R. Murthy, 2015. "Plant Loading and Dispatch Planning," International Series in Operations Research & Management Science, in: Applications of Operations Research and Management Science, edition 127, chapter 0, pages 51-89, Springer.
    • Handle: RePEc:spr:isochp:978-3-319-17921-6_4
    DOI: 10.1007/978-3-319-17921-6_4
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