Tactical Planning with Shelf-Life Constraints in the FMCG Industry

M. A.H. van Elzakker; E. Zondervan; N. B. Raikar; H. Hoogland; I. E. Grossmann

doi:10.1016/B978-0-444-63234-0.50087-7

Tactical Planning with Shelf-Life Constraints in the FMCG Industry

M. A.H. van Elzakker, E. Zondervan, N. B. Raikar, H. Hoogland, I. E. Grossmann

Research output: Contribution to journal › Conference article › Academic › peer-review

2 Citations (Scopus)

Abstract

Shelf-life restrictions play an important role in the tactical planning for the Fast Moving Consumer Goods (FMCG) industry. Ignoring shelf-life limitations could lead to unnecessary waste of products and missed sales. We present 3 methods of implementing shelf-life limitations in an LP planning model. A direct method, where the number of weeks since a product was produced is tracked, an indirect method, which ensures that the total shelf-life of a product is not exceeded, and a hybrid method that models the shelf-life on the first storage stage directly and on the second stage indirectly. With the direct method solutions with the lowest costs were obtained. However, with the hybrid method solutions with a cost increase of only 0.01-0.03% could be obtained in about 1/5^th of the computational time. With the indirect method solutions could be obtained in 1/50^th of the time of the direct method. However, the costs increased by up to 13.3%.

Original language	English
Pages (from-to)	517-522
Number of pages	6
Journal	Computer Aided Chemical Engineering
Volume	32
DOIs	https://doi.org/10.1016/B978-0-444-63234-0.50087-7
Publication status	Published - 2013
Externally published	Yes
Event	European Symposium on Computer Aided Process Engineering-23 - Lappeenranta, Finland Duration: 9 Jun 2013 → 12 Jun 2013

Keywords

Fast Moving Consumer Goods
Shelf-life
Tactical Planning

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10.1016/B978-0-444-63234-0.50087-7

Cite this

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title = "Tactical Planning with Shelf-Life Constraints in the FMCG Industry",

abstract = "Shelf-life restrictions play an important role in the tactical planning for the Fast Moving Consumer Goods (FMCG) industry. Ignoring shelf-life limitations could lead to unnecessary waste of products and missed sales. We present 3 methods of implementing shelf-life limitations in an LP planning model. A direct method, where the number of weeks since a product was produced is tracked, an indirect method, which ensures that the total shelf-life of a product is not exceeded, and a hybrid method that models the shelf-life on the first storage stage directly and on the second stage indirectly. With the direct method solutions with the lowest costs were obtained. However, with the hybrid method solutions with a cost increase of only 0.01-0.03% could be obtained in about 1/5th of the computational time. With the indirect method solutions could be obtained in 1/50th of the time of the direct method. However, the costs increased by up to 13.3%.",

keywords = "Fast Moving Consumer Goods, Shelf-life, Tactical Planning",

author = "{van Elzakker}, {M. A.H.} and E. Zondervan and Raikar, {N. B.} and H. Hoogland and Grossmann, {I. E.}",

year = "2013",

doi = "10.1016/B978-0-444-63234-0.50087-7",

language = "English",

volume = "32",

pages = "517--522",

journal = "Computer Aided Chemical Engineering",

issn = "1570-7946",

publisher = "Elsevier B.V.",

note = "European Symposium on Computer Aided Process Engineering-23, ESCAPE-23 ; Conference date: 09-06-2013 Through 12-06-2013",

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T1 - Tactical Planning with Shelf-Life Constraints in the FMCG Industry

AU - van Elzakker, M. A.H.

AU - Zondervan, E.

AU - Raikar, N. B.

AU - Hoogland, H.

AU - Grossmann, I. E.

PY - 2013

Y1 - 2013

N2 - Shelf-life restrictions play an important role in the tactical planning for the Fast Moving Consumer Goods (FMCG) industry. Ignoring shelf-life limitations could lead to unnecessary waste of products and missed sales. We present 3 methods of implementing shelf-life limitations in an LP planning model. A direct method, where the number of weeks since a product was produced is tracked, an indirect method, which ensures that the total shelf-life of a product is not exceeded, and a hybrid method that models the shelf-life on the first storage stage directly and on the second stage indirectly. With the direct method solutions with the lowest costs were obtained. However, with the hybrid method solutions with a cost increase of only 0.01-0.03% could be obtained in about 1/5th of the computational time. With the indirect method solutions could be obtained in 1/50th of the time of the direct method. However, the costs increased by up to 13.3%.

AB - Shelf-life restrictions play an important role in the tactical planning for the Fast Moving Consumer Goods (FMCG) industry. Ignoring shelf-life limitations could lead to unnecessary waste of products and missed sales. We present 3 methods of implementing shelf-life limitations in an LP planning model. A direct method, where the number of weeks since a product was produced is tracked, an indirect method, which ensures that the total shelf-life of a product is not exceeded, and a hybrid method that models the shelf-life on the first storage stage directly and on the second stage indirectly. With the direct method solutions with the lowest costs were obtained. However, with the hybrid method solutions with a cost increase of only 0.01-0.03% could be obtained in about 1/5th of the computational time. With the indirect method solutions could be obtained in 1/50th of the time of the direct method. However, the costs increased by up to 13.3%.

KW - Fast Moving Consumer Goods

KW - Shelf-life

KW - Tactical Planning

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SN - 1570-7946

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T2 - European Symposium on Computer Aided Process Engineering-23

Y2 - 9 June 2013 through 12 June 2013

ER -

Tactical Planning with Shelf-Life Constraints in the FMCG Industry

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Keywords

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