Dow AgroSciences Uses Simulation-Based Optimization to Schedule the New-Product Development Process

Matthew H. Bassett (), L. Leslie Gardner () and Kent Steele ()
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Matthew H. Bassett: Dow AgroSciences, 9330 Zionsville Road, Indianapolis, Indiana 46268
L. Leslie Gardner: University of Indianapolis, 1400 East Hanna Avenue, Indianapolis, Indiana 46227
Kent Steele: Dow AgroSciences, 9330 Zionsville Road, Indianapolis, Indiana 46268

Interfaces, 2004, vol. 34, issue 6, 426-437

Abstract: Dow AgroSciences has improved its bottom line by using simulation-based optimization to reduce the time and expense of moving a portfolio of products to market. We examined mathematical programming approaches for scheduling new-product development but found that the solution of these formulations is intractable for problems of practical size that include resource constraints. We developed a simulation-based framework for generating feasible solutions, which can be used with any heuristic optimization approach (for example, tabu search or genetic algorithms). The heuristic optimization algorithms operate on a solution space consisting of the precedence relationships among activities in the new-product development process. The firm implemented this approach via a Six Sigma project. From 1998 to 2004, it saved several million dollars based on the schedules determined using simulation-based heuristic optimization.

Keywords: information systems; decision-support systems; industries; chemical (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (2)

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