Balancing Effort and Plan Quality: Tactical Supply Chain Planning in the Chemical Industry

Annika Vernbro (), Iris Heckmann () and Stefan Nickel ()
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Annika Vernbro: FZI Research Center for Information Technology
Iris Heckmann: FZI Research Center for Information Technology
Stefan Nickel: Karlsruhe Institute of Technology

A chapter in Operations Research Proceedings 2016, 2018, pp 629-634 from Springer

Abstract: Abstract Tactical supply chain planning in the chemical industry is a frequently recurring task, which typically involves not only automated planning procedures but also manual planning efforts. Competent application of optimization techniques in this context requires specialized skills and method-related knowledge. However, planners might have a background in overseeing production or comparable functions and personnel with expertise in optimization is scarce. Common simple heuristic planning approaches provided by ERP-systems do not even consider capacity constraints. This leads to considerable amounts of manual planning efforts. Still, for complex supply chains the resulting plans likely lack in quality. Available advanced heuristics can produce better plans but at the same time require expertise and maintenance efforts comparable to optimization based approaches. We introduce a concept of quality of supply network plans and investigate the potential for achieving balance between effort and plan quality by incorporating certain dimensions of quality in application friendly planning heuristics.

Date: 2018
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DOI: 10.1007/978-3-319-55702-1_83

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