Data-Driven Decision Making for Strategic Production Planning in a Brewing Company

Markus Mickein (), Matthes Koch and Knut Haase
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Markus Mickein: Universität Hamburg
Matthes Koch: Universität Hamburg
Knut Haase: Universität Hamburg

A chapter in Operations Research Proceedings 2021, 2022, pp 375-381 from Springer

Abstract: Abstract Changing consumer preferences present a difficult challenge to the brewing industry and hence necessitate adaptations of the production system due to changed requirements. Beer manufacturing is subject to restrictive dependencies, such as lead times, shelf life, multilevel processes, and storage tank restrictions. Therefore, we propose a multilevel capacitated lot-sizing problem (MLCLSP) that covers brewery-specific constraints. The investigated brewing company produces 220 finished and 100 semifinished products on 13 production and 8 storage resources within 3 production levels. Since the brewery-specific MLCLSP cannot be solved within reasonable computing time in the case at issue, we introduce a priority-based fix-and-relax-and-optimize heuristic. We present a computational study and managerial insights regarding changes in consumer preferences (i.e., additional products with low demand). We prove that the priority-based strategy dominates the standard strategy in solution quality and computation time. Furthermore, we demonstrate the potential of the MLCLSP-based planning approach for strategic decision making by revealing the impact on the entire production system.

Keywords: Strategic planning and management; Production and inventory systems; Decision support systems (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-3-031-08623-6_55

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DOI: 10.1007/978-3-031-08623-6_55

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