Multiperiod recipe optimisation

1. Optimisation of
purchases,
supply,
stocks,
recipes over various periods
with constraints on the variation of the recipe
composition and
accounting for future price uncertainty
in a single optimisation
Frits Fredrick
Radar Automation

2. Factory1 Factory3
Factory2
Market2
wheat
Market1
wheatSales
1&2
wheat
Sales3
wheat
Consumption 1
wheat
Consumption 3
wheat
Consumption 2
wheat
Purchase 1->1
wheat
Purchase 1->2
wheat
Purchase 2->2
wheat
Purchase 2->3
wheatReport1 wheat Report3 wheat
Report2 wheat
Generic outline

3. Factory1 Factory3
Factory2
Market2
wheat
Market1
wheat
Sales2
wheat
Market3
wheat
Consumption 1
wheat
Consumption 3
wheat
Consumption 2
wheat
Purchase 1->1
wheat
Purchase 2->2
wheat
Purchase 3->3
wheat
Sales1
wheat
Sales3
wheat
Report1 wheat
Report3 wheat
Report2 wheat
Scenario with
purchase per factory

4. Factory1 Factory3
Factory2
Market
wheat
Sales
wheat
Consumption 1
wheat
Consumption 3
wheat
Consumption 2
wheat
Purchase ->1
wheat
Purchase ->2
wheat
Purchase ->3
wheat
Report1 wheat
Report3 wheatReport2 wheat
Scenario with single
market, supply per
factory

5. Which outline fits with your business?
Single
market, single
fatory
Single
market,
multiple
factories
(price per
factory)
Multiple
markets,
multiple
factories
(many on
many)

6. Input for each location (period)
Formula
Tonnage
Raw material
Initial
availability
Stock cost
Factories
Raw material
Availability
Markets

7. Input for each flux (per period/ per raw
material)
Price or cost
Minimum and
maximum
Market
Factory
Market,
sales

8. Possible logistic constraints for each period
• Minimum/maximum purchase or sales, for each raw material or for
each purchase group
• Minimum/maximum availability on the market for each raw
material or purchase group
• Minimum/maximum supply for each raw material to each factory
• Minimum/maximum consumption for each raw material, in each
factory
• Minimum/maximum stock for each raw material or raw material
group and for each factory

9. Possible constraints for each recipe and
period
• Minimum/maximum on the incorporation of each raw
• Minimum/maximum on the increase/decrease on each raw material
with respect to the incorporation of the previous period
• Minimum/maximum on the nutritional value of each nutrient
• Minimum/maximum on the increase/decrease on each nutrient
with respect to its value in the previous period

10. Output for each location (period)
Raw material
Consumption
Stock
Formula
Price
Factory
Raw material
Purchase
Quantity sold
Market

14. Optimise decision making : when and how many
to buy of each raw material (overview of
purchases per period)

15. In the following case studies, we used the
following outline:
a single market,
with a restricted availability for some raw materials
per period on the market,
purchase prices per factory and per period,
limited stock capacity for some raw materials,
limited supply capacity for some raw materials and
factories,
limited capacity to consume some raw materials in
some factories,

16. Optimise decision making : when and how many to
buy of each raw material (raw material supply and
consumption per factory and per per period)

17. Optimise decision making : when and how
many to buy of each raw material (logistic
constraints)

18. Anticipate on future prices when applying
tolerances : optimising without tolerances

19. Accounting for the tolerances on maize (-5%,+5%)
when optimising : anticipate on the price decrease
in october, therefore a less pronounced decline in
summer