Abstract
This study addresses a capacitated intermediate product selection and blending problem typical for two-stage production systems in the food processing industry. The problem involves the selection of a set of intermediates and end-product recipes characterising how those selected intermediates are blended into end products to minimise the total operational costs under production and storage capacity limitations. A comprehensive mixed-integer linear model is developed for the problem. The model is applied on a data set collected from a real-life case. The trade-offs between capacity limitations and operational costs are analysed, and the effects of different types of cost parameters and capacity limitations on the selection of intermediates and end-product recipes are investigated.
Original language | English |
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Pages (from-to) | 26-42 |
Number of pages | 17 |
Journal | International Journal of Production Research |
Volume | 51 |
Issue number | 1 |
DOIs | |
State | Published - 1 Jan 2013 |
Keywords
- operations management
- production planning