Multi-product allocation and distribution

This paper describes techniques used by a beer company to optimise the allocation and distribution of their beer. These techniques are also applicable to other manufacturing and distribution environments. Of particular interest is a two-phase model that allows a "look-ahead" to future sale...

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Bibliographic Details
Main Authors: D.C. Currin, H.W. Ittmann
Format: Article
Language:English
Published: Operations Research Society of South Africa (ORSSA) 2003-12-01
Series:ORiON
Online Access:http://orion.journals.ac.za/pub/article/view/508
Description
Summary:This paper describes techniques used by a beer company to optimise the allocation and distribution of their beer. These techniques are also applicable to other manufacturing and distribution environments. Of particular interest is a two-phase model that allows a "look-ahead" to future sales, the decomposition of the problem into a large number of sub-problems (to reduce solution time), and the equitable distribution of material when stocks are over- or undersupplied. The optimisation is part of an interactive planning system, and the relationship between the optimisation module and the rest of the system is briefly described.
ISSN:2224-0004