Supply Chain Planning at a Chemical Process Industry

• The purpose of this paper is to develop a mathematical optimization model that can be used as a decision support tool for the supply chain planning at Perstorp Oxo AB, a global company in the process industry. At their site in Stenungsund, Perstorp Oxo AB produce chemicals to customers in a variety of branches and for further refinement at other Perstorp sites in Gent, Castellanza and Perstorp. The customers are mainly in branches such as food and feed, leather and textile, plastic and safety glass production. Since Perstorp Oxo sells products to customers worldwide, two large inventory facilities are located in Antwerp (Belgium)and Tees (United Kingdom) for five product types each and two smaller facilities in Philadelphia (USA) and Aveiro (Portugal) for one type respectively. The developed model is a mixed-integer linear program, where the objective function maximizes the profit margin, that is, the difference between the selling price and the cost of production, transportation, inventory carrying and outsourcing. A solution to the model shows the quantities to be transported between the different sites, production rates, inventory levels, setups and purchases from external suppliers, each with its respective cost. The results of a baseline scenario show that there is a potential to increase profit margin by using a decision support tool based on an optimization model.

Ämnesord

NATURVETENSKAP  -- Matematik -- Beräkningsmatematik (hsv//swe)

NATURAL SCIENCES  -- Mathematics -- Computational Mathematics (hsv//eng)

Nyckelord

Process Industry

Supply Chain

Mixed Integer Programming

Optimization

Publikations- och innehållstyp

vet (ämneskategori)

kon (ämneskategori)