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

Anita Romsdal, Jan Ola Strandhagen and Heidi Carin Dreyer

No 199374, 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria from International European Forum on System Dynamics and Innovation in Food Networks

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.

Keywords: Agribusiness; Production Economics (search for similar items in EconPapers)
Pages: 10
Date: 2014-10
New Economics Papers: this item is included in nep-agr and nep-mkt
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iefi14:199374

DOI: 10.22004/ag.econ.199374

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