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Data-Driven Decision Making for Strategic Production Planning in a Brewing Company

In: Operations Research Proceedings 2021

Author

Listed:
  • Markus Mickein

    (Universität Hamburg)

  • Matthes Koch

    (Universität Hamburg)

  • Knut Haase

    (Universität Hamburg)

Abstract

Changing consumer preferences present a difficult challenge to the brewing industry and hence necessitate adaptations of the production system due to changed requirements. Beer manufacturing is subject to restrictive dependencies, such as lead times, shelf life, multilevel processes, and storage tank restrictions. Therefore, we propose a multilevel capacitated lot-sizing problem (MLCLSP) that covers brewery-specific constraints. The investigated brewing company produces 220 finished and 100 semifinished products on 13 production and 8 storage resources within 3 production levels. Since the brewery-specific MLCLSP cannot be solved within reasonable computing time in the case at issue, we introduce a priority-based fix-and-relax-and-optimize heuristic. We present a computational study and managerial insights regarding changes in consumer preferences (i.e., additional products with low demand). We prove that the priority-based strategy dominates the standard strategy in solution quality and computation time. Furthermore, we demonstrate the potential of the MLCLSP-based planning approach for strategic decision making by revealing the impact on the entire production system.

Suggested Citation

  • Markus Mickein & Matthes Koch & Knut Haase, 2022. "Data-Driven Decision Making for Strategic Production Planning in a Brewing Company," Lecture Notes in Operations Research, in: Norbert Trautmann & Mario Gnägi (ed.), Operations Research Proceedings 2021, pages 375-381, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-08623-6_55
    DOI: 10.1007/978-3-031-08623-6_55
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