Make to stock and mix to order: choosing intermediate products in the food-processing industry

Akkerman, Renzo; Meer, Dirk van der; Donk, Dirk Pieter van

doi:10.1080/00207540902810569

Cited by 48 publications

(28 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…(Rutten and Bertrand, 1998;Taylor et al, 1981) In many process industries recipes can be varied to obtain different proportions of output or to alter the properties of the output to fit current product quality requirements. Recipes can also be used to minimize material cost by considering changes in raw material prices or variations of raw material availability (among others Akkerman et al 2010;Floudas and Lin, 2005;Fumero et al, 2012 andBertrand, 1998).…”

Section: Production and Raw Materials Characteristicsmentioning

confidence: 99%

“…(e.g. Rutten and Bertrand, 1998;Floudas and Lin, 2005;Akkerman et al 2010;Fumero et al, 2012) Another characteristic that certainly separates planning in process industries from manufacturing or assembly industry is the divergent bill of material or the existence of co-or by-products resulting from production processes separating raw material into several products based on raw material content. Co-products are products simultaneously generated from a production process with similar value to the producer and can both be the trigger of production.…”

Section: Raw Materials Properties and Divergent Bill Of Materialsmentioning

confidence: 99%

“…An interesting example of a pooling in the food industry is given by Akkerman et al (2010). They show how a reduced set of intermediate products can be used to reduce inventory costs when blending final products using different recipes.…”

Section: Blending Problem / Recipesmentioning

confidence: 99%

“…Additionally it would be interesting to investigate other control tools within divergent supply chains than internal pricing to balance co-product demand. Akkerman et al (2010) show how a reduced set of intermediate products can be used to reduce inventory costs when blending final products using different recipes. It would be interesting to investigating if the same approach can be used to balance co-product demand caused by a divergent bill of material.…”

Section: Rq2mentioning

confidence: 99%

See 3 more Smart Citations

Supply chain coordination using optimal transfer pricing to balance co- and byproduct demand within a process industry

Kylinger¹

2015

View full text Add to dashboard Cite

Process industries has for long been important for the development of Swedish industry and society. All industries face different conditions that affect how to best run their operations. This thesis aims to describe some of the conditions that characterize process industries compared to other industries. Further one of these characteristics has been studied more closely.One of the traits of process industries is that they are positioned at the start of the transformation process close to the raw material mixing, separating or forming it into products often used for further transformation. Process industries hence become dependent on the properties of these materials. One of the most prominent characteristics inherent from the raw material properties is the divergent bill of material. The divergent bill of material originates from the fact that a given raw material is made up of different components that will yield several products with different characteristics when processed. When splitting the raw material into the desired products the yielded products from a certain raw material usually have different value to the producer, some more desired than others. These multiple products generated poses a challenge from a planning perspective raising questions like "How should we balance the supply and demand of all the products produced?", "What shall we do with the excess products produced?".The first paper in this thesis describe the production planning in four Swedish process industries with the ultimate aim to connect their planning to the supply chain characteristics they face as process industries. The study concludes that the industry specific conditions mainly affect planning at short time ranges when planning becomes more detailed. In general the use of planning or decision support systems is low, stemming from a, warranted or not, belief that general decision support systems do not fit process industries. Another finding is that the case companies mainly operate in niche markets. This study also highlighted that the planning complexity arising from characteristic of co-and by-product generation in combination with the lack of decision support systems requires further studies.The subsequent two papers focus on supply chain planning and coordination with a divergent bill of material. They present a mathematical model over the supply chain planning in a real case company in the specialty oils industry. The second paper investigates transfer pricing as a coordination tool by comparing decentralised supply chain planning with centralized planning in an integrated model. Transfer pricing is found to have a potential positive effect on supply chain planning while simultaneously creating problems in terms of uneven distribution of the contribution margin among supply chain partners.Finally the third paper more closely investigates different ways to set transfer prices and comparing them to the optimal transfer prices. Setting optimal transfer prices with a divergent bill of material has proven to be less str...

show abstract

Section: Production and Raw Materials Characteristicsmentioning

confidence: 99%

Section: Raw Materials Properties and Divergent Bill Of Materialsmentioning

confidence: 99%

Section: Blending Problem / Recipesmentioning

confidence: 99%

Section: Rq2mentioning

confidence: 99%

See 2 more Smart Citations

Supply chain coordination using optimal transfer pricing to balance co- and byproduct demand within a process industry

Kylinger¹

2015

View full text Add to dashboard Cite

show abstract

“…The point in the flow where speculation driven and commitment driven transformation are separated is referred to as CODP (Giesberts and Tang, 1992). CODP is also known as the order penetration point (Sharman, 1984), delayed differentiation (Akkerman et al, 2010), and postponement (Towill, 2005), and it is usually related to a stock point (Hoekstra andRomme, 1992, Wikner andRudberg, 2005). Note that all three types of drivers are applicable in both process industries and discrete manufacturing industries.…”

mentioning

confidence: 99%

Sales and operations planning based on a modularized view of supply chains : Supporting process industries and discrete manufacturing industries

Noroozi¹

View full text Add to dashboard Cite

The purpose of this dissertation is to propose a framework for sales and operations planning (S&OP), which is based on a modularized view of supply chains. The framework should support both process industries and discrete manufacturing industries in their quest for performance. S&OP has been highlighted in this framework due to its essential role in integrating different functions within a company and integrating a company with its supply chain partners (referred to as horizontal integration), and linking different planning levels in a company (referred to as vertical integration). As an integrator, S&OP influences companies' performance.Originally, S&OP was developed as a generic process but still in line with the requirements of discrete manufacturing industries. The specific requirements of process industries have not been emphasized in this process to the same extent. In order to suggest a modularized S&OP framework for both process industries and discrete manufacturing industries, a systematic literature review is performed to understand the specific characteristics of S&OP in process industries. As a result, the importance of continuity/discontinuity of materials and its influence on the required production processes are highlighted. This indicates that the production process in process industries is actually a hybrid of continuous production and discrete production, whereas the discrete manufacturing industries often only deploy discrete production. Continuous production has specific characteristics that would be beneficial to include in the S&OP process; nonetheless, this is in contrast to the view in the literature that considers S&OP a generic process. Generic here means that S&OP is independent of the context in terms of, for example, the industry in which it is implemented. This issue is investigated in this dissertation by identifying the requirements, which can be considered in the S&OP of process industries as add-ons to the generic S&OP. In addition to this, two other concepts addressing the properties of the production process are identified as important in planning and control, including S&OP. One addresses the level of repetitivity of the production process in response to the market demand, and the other concerns the trigger of the production flow. The three concepts are related to three different types of decoupling points and are the basis for a typology developed herein that provides a modularized view of supply chains. The application of the typology to S&OP leads to a modularized S&OP framework applicable to both process industries and discrete

show abstract

Managing Customer Order Decoupling Points in Supply Chains

Olhager

Donk²

2023

The Palgrave Handbook of Supply Chain Management

Self Cite

View full text Add to dashboard Cite

show abstract

Make to stock and mix to order: choosing intermediate products in the food-processing industry

Cited by 48 publications

References 25 publications

Supply chain coordination using optimal transfer pricing to balance co- and byproduct demand within a process industry

Supply chain coordination using optimal transfer pricing to balance co- and byproduct demand within a process industry

Sales and operations planning based on a modularized view of supply chains : Supporting process industries and discrete manufacturing industries

Managing Customer Order Decoupling Points in Supply Chains

Contact Info

Product

Resources

About