IDEAS home Printed from https://ideas.repec.org/h/spr/oprchp/978-3-319-07001-8_64.html
   My bibliography  Save this book chapter

Optimization of Sales and Operations Planning at Shell Chemicals Europe

In: Operations Research Proceedings 2013

Author

Listed:
  • Thijs Dongen

    (Shell Global Solutions International BV)

  • Dave Hurck

    (Shell Global Solutions International BV)

Abstract

In the chemical industry, planning and scheduling are labor-intensive, complex, rolling processes. Interdependent decisions have to be made around different stages within the supply chain (purchases, production, distribution, exchanges, storage levels, and sales). In taking these decisions the overall enterprise margin needs to be maximized across the global supply chain. To support making these decisions the chemicals supply chain has been modeled using GMOS/NetSim, an AIMMS-based network optimization tool jointly developed by Shell Global Solutions and ORTEC. Years of extensive collaboration with various customers have made GMOS/NetSim a proven tool for strategic supply chain studies. For this project a module was developed to calculate accumulated costs/margins throughout the supply chain. The outcomes are used to do detailed margin analyses. The key challenge was to integrate the model into the monthly S&OP at SCE. Input data needs to be obtained from 15+ people around the world from various fields of expertise on a regular basis, as market conditions constantly change. Moreover, actual data is used for model validation purposes and margin analyses for past months. The key outcomes from the optimization are shared with the user community twice every month. The main benefit of this project is that we are able to establish a unified global base plan and a unified approach for fact-based decision making. The complex mathematical model behind this approach includes a great level of detail reflecting reality in everyday SCE business. This improves both the quality and speed of business decisions at 3 months (S&OP) and multi-year (business plan) horizons across the global supply chain.

Suggested Citation

  • Thijs Dongen & Dave Hurck, 2014. "Optimization of Sales and Operations Planning at Shell Chemicals Europe," Operations Research Proceedings, in: Dennis Huisman & Ilse Louwerse & Albert P.M. Wagelmans (ed.), Operations Research Proceedings 2013, edition 127, pages 473-480, Springer.
    • Handle: RePEc:spr:oprchp:978-3-319-07001-8_64
    DOI: 10.1007/978-3-319-07001-8_64
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:oprchp:978-3-319-07001-8_64. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.