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Can Differentiated Production Planning and Control enable both Responsiveness and Efficiency in Food Production?

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  • Romsdal, Anita
  • Strandhagen, Jan Ola
  • Dreyer, Heidi Carin

Abstract

This paper addresses the complex production planning and control (PPC) challenges in food supply chains. The study illustrates how food producers' traditional make-to-stock (MTS) approach is not well suited to meet the trends of increasing product variety, higher demand uncertainty, increasing sales of fresh food products and more demanding customers. The paper proposes a framework for differentiated PPC that combines MTS with make-to-order (MTO). The framework matches products with the most appropriate PPC approaches and buffering techniques depending on market and product characteristics. The core idea is to achieve more volume flexibility in the production system by exploiting favourable product and market characteristics (high demand predictability, long customer order lead time allowances and low product perishability). A case study is used to demonstrate how the framework can enable food producers to achieve efficiency in production, inventory and PPC processes – and simultaneously be responsive to market requirements.

Suggested Citation

  • Romsdal, Anita & Strandhagen, Jan Ola & Dreyer, Heidi Carin, 2014. "Can Differentiated Production Planning and Control enable both Responsiveness and Efficiency in Food Production?," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199374, International European Forum on System Dynamics and Innovation in Food Networks.
    • Handle: RePEc:ags:iefi14:199374
    DOI: 10.22004/ag.econ.199374
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    References listed on IDEAS

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    4. CRAMA, Yves & POCHET, Yves & WERA, Yannic, 2001. "A discussion of production planning approaches in the process industry," LIDAM Discussion Papers CORE 2001042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Soman, Chetan Anil & van Donk, Dirk Pieter & Gaalman, Gerard, 2004. "Combined make-to-order and make-to-stock in a food production system," International Journal of Production Economics, Elsevier, vol. 90(2), pages 223-235, July.
    6. Ben Naylor, J. & Naim, Mohamed M & Berry, Danny, 1999. "Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 107-118, May.
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    Cited by:

    1. Viet, Nguyen Quoc & Behdani, Behzad & Bloemhof, Jacqueline, 2018. "Value of Information to Improve Daily Operations in High-Density Logistics," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(1), January.

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