GE Plastics Optimizes the Two-Echelon Global Fulfillment Network at Its High Performance Polymers Division

Rajesh Tyagi (), Peter Kalish (), Kunter Akbay () and Glenn Munshaw ()
Additional contact information
Rajesh Tyagi: Information and Decision Technologies, GE Global Research Center, Niskayuna, New York 12309
Peter Kalish: Information and Decision Technologies, GE Global Research Center, Niskayuna, New York 12309
Kunter Akbay: Information and Decision Technologies, GE Global Research Center, Niskayuna, New York 12309
Glenn Munshaw: Johns Manville International, 1465 17th Avenue, McPherson, Kansas 67460

Interfaces, 2004, vol. 34, issue 5, 359-366

Abstract: To achieve the highest customer satisfaction at the lowest costs, GE Plastics adopted a global approach to its manufacturing operations. Previously it met demand in one geographic region with production from that region only. It developed a decision-support system (DSS) to optimize the two-echelon global manufacturing supply chain for its high performance polymers division. The DSS uses a math-programming model to maximize contribution margin while taking into consideration product demands and prices, plant capacities, production costs, distribution costs, and raw material costs. The results of the model are the optimal production quantities by plant and the total contribution margin. The DSS is implemented in Excel and uses LINGO to solve the optimization model. After successfully implementing this system at the high performance polymers division, GE Plastics is rolling it out to other divisions.

Keywords: manufacturing; programming; linear; applications (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://dx.doi.org/10.1287/inte.1040.0088 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:34:y:2004:i:5:p:359-366

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().