TY - JOUR
T1 - Make to stock and mix to order
T2 - Choosing intermediate products in the food-processing industry
AU - Akkerman, Renzo
AU - van der Meer, Dirk
AU - van Donk, Dirk Pieter
PY - 2010
Y1 - 2010
N2 - In contrast to discrete manufacturers, food-processing companies can sometimes produce the same end products in different ways: either mix first and then process, or process first and mix later. Moreover, a final product can be mixed from different raw materials or intermediates. That adds a new dimension to postponement and decoupling point theory as choices have to be made not only with regard to where to locate inventory, but also which products to store. That aspect has not been covered so far. This paper explores this problem for a typical two-stage food production situation in a flour mill. The number and composition of intermediate products in the decoupling point is determined using a stepwise solution approach supported by mathematical programming models. The procedure facilitates decision-making for the management of the mill regarding how many and what intermediates to store. Extensions of the models presented might be helpful to solve related problems such as determining the number of intermediate storage tanks required.
AB - In contrast to discrete manufacturers, food-processing companies can sometimes produce the same end products in different ways: either mix first and then process, or process first and mix later. Moreover, a final product can be mixed from different raw materials or intermediates. That adds a new dimension to postponement and decoupling point theory as choices have to be made not only with regard to where to locate inventory, but also which products to store. That aspect has not been covered so far. This paper explores this problem for a typical two-stage food production situation in a flour mill. The number and composition of intermediate products in the decoupling point is determined using a stepwise solution approach supported by mathematical programming models. The procedure facilitates decision-making for the management of the mill regarding how many and what intermediates to store. Extensions of the models presented might be helpful to solve related problems such as determining the number of intermediate storage tanks required.
U2 - 10.1080/00207540902810569
DO - 10.1080/00207540902810569
M3 - Journal article
VL - 48
SP - 3475
EP - 3492
JO - International Journal of Production Research
JF - International Journal of Production Research
SN - 0020-7543
IS - 12
ER -