SALES & OPERATION PLANNING OF BEER SUPPLY CHAINS

PDF version of this document:

https://www.doanalytics.net/Documents/OPCHAIN-BEER-Descriptive-English.pdf 

IBM CPLEX Optimization Studio implementation (PPT presentation):

https://www.doanalytics.net/Documents/OPTEX-IBM-ILOG-MMS.pdf

STATE-OF-THE-ART OF RESILIENT LOGISTICS NETWORKS DESIGN. CASE: BEER SUPPLY CHAINS

Complementary document: https://www.dhirubhai.net/pulse/resilient-logistics-networks-design-using-stochastic-risk-velasquez/ 

INDEX

1.     OPCHAIN-S&OP/BEER

2.     BEER-EXPRESS SUPPLY CHAIN

2.1.      CRAFT BEERS AND INDUSTRIAL BEERS

2.2.      DESCRIPTION OF THE PRODUCTIVE SYSTEM

2.3.      MATERIALS

2.4.      TRANSPORT MODES

2.5.      DISTRIBUTION NETWORK

2.6.      AVAILABLE TIME

2.7.      MODELING INDUSTRIAL PRODUCTION

2.7.      COST OF THE OPERATION

3.     ENTERPRISE WIDE OPTIMIZATION

4.     STATE-OF-THE-ART OF SALES & OPERATION PLANNING

5. COMPUTACIONAL IMPLEMENTATION

6. SUPLY CHAIN MATHEMATICAL MODELS SUPPORTED BY DECISIONWARE

SALES & OPERATION PLANNING OF BEER SUPPLY CHAINS

1.     INTRODUCTION

OPCHAIN-S&OP/BEER is the Decision Support System DSS developed by DW to support the Sales and Operating Planning (S&OP) Process in BEER-EXPRESS (a hypothetic enterprise in the beer sector).

 OPCHAIN-S&OP/BEER supports the process of optimizing the aggregate planning of industrial and logistics operations consisting of defining quantitative goals, among other, for:

1.   Weekly/monthly volumes produced in the production lines.

2.   Assign final products to be distributed among facilities

3.   Selection of modes of transport to be used

 OPCHAIN-S&OP/BEER produces quantitative goals, among other, for:

• Production Quantities: For each process line and determines the optimal level of production for each product.
• Packaged quantities: for each line of packaging and for each product end determines the optimum amount of packaging.
• Inventory levels: for each storage produces the optimum level of inventory at the end of each period. It is considered the freshness character of beer.
• Resources Consumption: for all the resources involved in the productive process determines its level of consumption in each plant, packing line, …
• Optimum Blending: for products from flexible production formulas, the model determines the optimal blending.
• Labor Allocation: determines whether it is necessary to hire extra shifts, in accordance with trade union rules, or if supernumeraries are required, to achieve production goals.
• Product Transfers: volumes of transfers of raw material, parts, end products between facilities that are part of the supply chain.

 The end user can select the objective function to use according to his criteria, the most used are:

• Minimize production costs, assuming a demand which must meet, or
• Revenue maximization by selecting products that are more profitable to produce, according to the structure of the supply chain.

OPCHAIN-S&OP/BEER is available in multiple optimization technologies such as: GAMS, IBM CPLEX Optimization Studio, AMPL, FICO Xpress Optimization Suite, IMPL, C, PYTHON, GMPL, C-GUROBI … .

The first version of OPCHAIN-S&OP/BEER was developed in 1991. To obtain the algebraic formulation or a demo of OPCHAIN-S&OP/BEER please send a mail to [email protected]

 2.     BEER-EXPRESS SUPPLY CHAIN

Below is conceptualization of the production chain served by BEER-EXPRESS that have craft beers and industrial beers.

This section describes BEER-XPRESS supply chain that is modeled on OPCHAIN-S&OP/BEER, this modeling S&OP model can be considered traditional, newer versions (state-of-the-art) are described in a later section.

2.1.    CRAFT BEERS AND INDUSTRIAL BEERS

All beer is made with four basic elements: barley, water, hops and yeast.

The main difference between industrial and craft beer is the proportions, raw material treatment and the brewing process. The proportion of raw materials is lower in industrial beers which also use non-natural preservatives. Craft beers do not use any artificial additives, the brewing process is manual from grinding malts to bottling.

Craft beer is a completely different beer from industrial beer, since the moment it has no chemical additives it is really artisanal, made by people who permanently research new formulas. It is not an industrial process; this makes it more attractive in taste and presentation. Each brew-master develops his own formula or recipe, to achieve what his audience most accepts. That's why you'll find different tastes even within the same type of beer. That makes it a more expensive product than industrial beer.

 We can talk about three categories of beer:

1.   Homemade Brewers: they have a rudimentary team that allows, with some luck, to repeat close the same recipe in different productions. A homemade brewer makes his beer to enjoy himself or with friends.

2.   Microbreweries (brewpubs: small manufacturers, have a more sophisticated equipment than home brewers: tanks, pumps, filters... but they don't get to the level of sophistication of industrial breweries. Many parts of the process are done manually (addition of grain and hops, washing of instruments, etc.) and a personal/regional profile is sought beer on "such a side" and not "such a brand". A micro-brewery makes his beer to sell but also to enjoy it: he wants that his "creature" to be revered by all.

3.   Industrial breweries: they make thousands and thousands of liters and where there are not so many people behind. Most stages are robotic or automated and the quantities and chemistry of the elements are thoroughly controlled. Industrial breweries seek to lower costs, increase their sales and position their brands; doesn't make the beer he likes best, but the beer he leaves the most money.

From a mathematical modeling point of view, a network of micro-breweries resembles a network of industrial breweries, which differ in the technologies used and in production scales.

 2.2.   DESCRIPTION OF THE PRODUCTIVE SYSTEM

 For the conceptualization of the production system of S&OP-BEER, an extended version, by DW, of the terminology used in ISA-95 (Instrument Society of America, United States, 1999), is used as a reference, which hierarchically establishes the physical places associated with the production system, as shown in the following figure, adapted from Enterprise Control System Integration. Part 1 - Models and Terminology (ISA-95).

The following table presents the hierarchical conceptualization established by the standard, including the extension made by DW.

TABLE

A factory (site) is group several plants/productive areas, geographically located in one place, in which specific industrial work is carried out. Areas can be of the following types:

1.   Port

2.   Malting plant

3.   Processing plant (beers, malted products, soft drinks, ...)

4.   Packaging plant

5.   Supplies production plant

6.   Distribution center.

This concept is used in the model to describe production and product transport processes. A factory has no production, it occurs in the associated areas/plants. The production processes that are considered are batch processing.

The following diagram shows the connectivity of the supply chain served by BEER-EXPRESS. It has included the processing of soft drinks and other beverages, since this configuration is found in many countries where BEER-EXPRESS operates, this seeks a comprehensive view of the problem to be modeled.

2.2.1.          PORTS

The ports correspond to facilities for handling: i) the importation/exportation of the barley to be sent to the malting plants, and ii) the importation/exportation of beers.

2.2.2.          PROCESS PLANTS

Plants in which raw materials are transformed into products. In the beverage business, and taking into account the supply chain served by BEER-EXPRESS, OPCHAIN-S&OP/BEER considers the following types of processing plants: water, beer and malt, juices and soft drinks, if it is necessary may be considered to include other types of plants, such as liquors.

Plants are described by similar technical-economic parameters, but not necessarily using the same equations. The following types of areas are considered:

1.   Malting plant

2.   Processing plant (beers, malted products, soft drinks, ...)

3.   Packaging plant

4.   Supplies production plant

5.   Repacking plant

Areas can be composed of various types of process cells.

 2.2.2.1.              MALTING PLANTS

Processing plants that convert barley into malt, the main input of the brewing industry, greatly influencing most of its characteristics such as body, taste and aroma. The following table describes the main processes that occur inside the malting plants.

2.2.2.2.              BREWERIES 

 The processing plant called brewery is divided into several process cells, namely:

• Kitchens
• Fermented tanks
• Maturation tanks
• Filters

In addition to the cells it is all the internal transport infrastructure of the liquids inside the brewery, which is not considered herein. The following table describes the three main processes that occur inside breweries.

The brewery does not work as a mass production line, as there are multiple cells of each type, and more than one way to produce the products that will later be packaged.

As an aggregate production entity, the brewery processes malt as a raw material and transforms it into diluted beer and malted products ready for the packaging process. At the productivity level it is described based on the time required (hours) to produce a certain quantity (hectoliters) of a given product. Two product categories are processed in a brewery: beer and malted products.

 To produce beer the malt is cooked and transformed into must then fermented into tanks producing the so-called green must which is matured in a tank to produce concentrated beer which is diluted, incorporating water and carbonic gas (CO2, "carbonation") to obtain diluted beer before starting the packaging process.

 Similarly, malted products are produced, being the main difference that does not go through the fermentation process. The following table presents the relationship of musts and brands that occur in BEER-EXPRESS

It is possible to transport green or mature products between breweries; in this case the transported product must be stored in the maturation tanks before packaging.

 2.2.2.3.              PACKING PLANTS

 Plants in which the product is packed in the different presentations transforming it into a commercial product. The work cells in the packaging plant correspond to the packing lines on which the packaging operation of commercial products is physically carried out, each with its own technical characteristics and limitations with respect to operations they can do.

 2.2.2.4.              SUPPLIES PRODUCING PLANTS

 Plants that produce the supplies (bottles, lids, cans, labels, ... ) that are used to produce commercial products.

 2.2.3.          DISTRIBUTION CENTERS

 The distribution centers (CDs) is the facility in which there is inventory of SKUs, coming from the packaging plants, and / or containers and / or inputs, from the plants producing inputs and the return of containers from the consumption areas.

 In BEER-EXPRESS three levels of distribution centers are considered; the characteristics of these CDs are:

1.   CD1: They are in the same place as a packaging plant.

2.   CD2: They are not in the same place as a packaging plant.

3.   CD3: They are not in the same place as a packaging plant, they differ with CD2s by having less storage capacity.

 At the connectivity level, in BEER-EXPRESS, the following operating standards are met, for the distribution of commercial products:

• All CD1s are connected to each other
• CD1s are connected to CD2 and CD3
• CD2 and CD3 are not connected to other CDs
• All CDs are connected to sets of consumption centers

 Some CDs can pack combos and re-pack commercial products.

 2.2.4.          CONSUMPTION ZONES

Consumption zones correspond to the sites where demand for commercial products is realized. The following are three levels of grouping of the territory where demand can be measured/allocated

1.   Basic Territorial Unit (BTU): corresponds to the minimum unit in which the territory is divided.

2.   Demand Cluster: corresponds to a set of BTUs that are grouped together in order to facilitate the management of the data considering their connectivity at the secondary transport level.

3.   Consumption Zones: corresponds to the sites where BEER-EXPRESS delivers the commercial products to the network of distributors and intermediaries that will carry the products to the points of sale. Each distribution center is associated with a set of consumption zones.

In BEER-EXPRESS the measurement and projection of demand are carried out at the level of the consumption zones. Demand in towns/cities is obtained through mathematical models developed by BEER-EXPRESS.

2.3.         MATERIALS

Products that are handled in the production system can be classified into one of the following types:

1.   Raw materials

2.   Attached products (rice, corn syrup, ... )

3.   Industrial products

4.   Supplies

5.   Added products (cups, caps, ...)

 2.3.1.          RAW MATERIALS

 The fundamental raw material of the process corresponds to barley, which enters the production system through ports, from where they must be sent to the malting plant to perform the first transformation process in the production chain.

 2.3.2.          ATTACHED PRODUCTS

 The attached products are un-malted cereals (rice) that are added to beer due to the high diastatic force (ferment) of the malt in order to have good stability. Syrup is also considered as an attached product.

 2.3.3.          INDUSTRIALS PRODUCTS

 Industrial products refer to commercial products, intermediate products and/or by-products that are produced in the different industrial processes that are carried out along the supply chain. Conventionally all products have a SKU (stock keeping unit) that identifies them.

 2.3.3.1.              PRODUCTS CATEGORIES

 In BEER-EXPRESS products fall into two categories: Beers and malted products.

 The breweries can also produce isotonic, soft drinks and waters.

 By the processing status, products can be divided into bulk and packaged liquids. The first are produced in breweries and are grouped by brands, the seconds are produced in the packing plants and are linked to commercially SKUs.

 The products handled in the industrial system are:

1. By-products:

• Malt
• Must
• Green must
• Malted product
• Mature beer
• Brand beer

2. Comercial product (SKU)

 The by-products correspond to intermediate products of the production process whose result is the branded product before being packaged, which corresponds to diluted beer.

 Commercial products resulting from the packaging of the branded product in a specific container (presentation). Within commercial products, the following classifications may be considered:

1.   Normal: products from production plants that are packaged on packaging lines in packaging plants.

2.   Repackaged: products obtained from packaging plants at distribution centers from other packaged products; these products are not packaged directly in packaging plants.

3.   Substitute Products: products that are created temporarily (e.g. for an event or promotion), that have their own demand and their own SKU, and which at the end of their life cycle (demand period) the residuals can be used to meet the demand of the called the parent/main product of the substitute product.

4.   Export Product: Industrial products that are exported, to meet the demand must be considered repackaging processes and export processing times.

5.   Imported Product: Industrial products that are imported, to meet the demand must consider the processing times of the import and the reduction of freshness time due to the time of travel.

6.   Combos: combinations of normal or repackaged products, which have their own demand and their own SKU, and are obtained in packing plants at distribution centers. A combo may contain added products that are not produced by BEER-EXPRESS, for example a set of cups.

 An important feature of commercial products is that they must ensure freshness and therefore their accumulation in inventories for very long periods is not convenient/feasible. Each commercial product must be associated with a lifetime that defines the management of inventories.

 2.3.4.          ADDED PRODUCTS

 Products not produced in BEER-EXPRESS that are incorporated into the combos.

 2.3.5.          SUPPLIES

 They correspond to materials that are used along the different links of the supply chain. Two types should be considered:

• Containers
• Others supplies

 Containers correspond to three types of products: packaging, plastic boxes and pallets; they are divided into returnable and non-returnable. Returnable involve special management within the supply chain as they must be managed by the model and they correspond to company assets.

 2.4.         TRANSPORT MODES

 They are used to transport products between the different sites where the supply chain operates. They differ by capacity and cost of utilization.

 The distribution activity is carried out by the modes of transport and can be classified into three types according to the links participating within the distribution channel.

1.   Primary Distribution: is the distribution of products from the point of manufacture to a distribution center.

2.   Secondary Distribution: is the distribution of products from a distribution center to the end customer.

3.   Reverse Distribution: This is the return of the load from a distribution center to the manufacturing plant or the return of load from the end customer to the distribution center. It is related to returns and handling of returnees.

 The following modes of transport are considered:

CCC       Tankers for concentrated beer transport

TPP       Primary transport by own vehicle

TPO      Primary outsourcing transport (carrier company)

TSO     Transportation by intermediary partners

TVP       Secondary transport by own vehicle

TOU     Secondary transport outsourcing (carrier company)

2.5.         DISTRIBUTION NETWORK 

 The distribution network of industrial products is modeled based on the concept of route or "connection" or "road corridor" which joins two sites in which the supply chain operates.

 The path corresponds in the mathematical modeling to an index to which the possible transfers of products between the facilities that are linked. The following types of routes are considered:

• Process plant to processor plant
• Process plant to local distribution center
• Distribution center to distribution center
• Distribution center to consumer zone
• Distribution center to port
• Port to distribution center

The previous routes are linked to the products and modes of transport and the freight that causes the use of the route.

 2.6.         AVAILABLE TIME

The actual production capacity of the system depends on the availability of time for productive tasks. In the case of BEER-EXPRESS, the following business rules are considered:

• Three productive shifts are available
• In a period, there are ordinary days (usually Monday to Saturday) and non-ordinary days (Sundays and/or public holidays)
• Each turn lasts eight (8) hours
• There is a maximum of overtime that can be worked on in the period
• In the period, unavailable time may be presented for scheduled maintenance.

Based on the above the availability the time for production must be estimated based on the normal hours that the contracted shifts must work and the extra overtime that each of these shifts can work.

 2.7.         MODELING INDUSTRIAL PRODUCTION

 The general rules for production modeling are:

• In each period the production is modeled based on the distribution of the total time available in the time used by each of the different technologies that can be processed in a production unit

 Σ Times Dedicated to Each Available Technologies ≤ Available Time

•  Time spent on a technology is calculated as the quantity produced multiplied by the production time (the inverse of the production rate)

 Time Technology = Production Time (hours/unit) × Production Quantity (unit)

• The available time corresponds to the total normal hours plus overtime less the time spent on maintenance and preparation of the production units.

 Available Time = Normal Hours + Overtime - Preparation Time - Maintenance Time

 With respect to any of the values on the right side they can be a parameter or a variable, this depends on the scope of the modeling.

Normal hours: is a variable in cases where the model decides whether to activate a shift. The time provided by a shift will be equal to eight (8) hours multiplied by the number of working days of the period, which can be used, or not, in production.

Overtime: is a variable whose value determines the model, according to its convenience or not.

Preparation Time: is a parameter that is related to the preparation of production units to perform a production activity. The preparation time of the processes depends on the production process, for tactical planning models should be estimated since, normally, their detailed modeling involves binary variables which increase significantly the time to solve the mathematical problem. Given the type of models, for strategic and tactical problems these parameters are not related to the sequence of activities in a machine, as is the case in operational models (scheduling).

Maintenance Time: is a parameter that must be divided into routine maintenance and scheduled maintenance. Routine maintenance corresponds to maintenance activities that are carried out permanently to ensure the proper functioning of the production units, the scheduled maintenance activities involving paralysis or “degrade” productive capacity.

•  About routine maintenance time plus preparation time these are associated with the factory efficiency of the processes.
•  With respect to scheduled maintenance time. The estimate of this time is different for periods in the short term and for long-term periods.

Short term: maintenance time must come from short-term preventive/corrective maintenance plans which are defined prior to the model run. These maintenance activities involve paralyzing the production unit and/or losing its productivity which must be converted into unavailable equivalent hours.

 Scheduled Maintenance Time = Data Read or Calculated From the Derrate Read

 Medium Term: in this case preventive/corrective maintenance plans are not known in detail, therefore the time-loss estimate is done using an unavailability factor that affects all periods; . then the available time is calculated as:

 Expected Scheduled Maintenance Time = (Total Time Period) - (1 - Operational Unavailability)

 2.8.         COST OF THE OPERATION OF THE SUPPLY CHAIN

 The objective of optimization may be to:

•  Minimize production costs calculated as the sum of all variable costs that depend on the production level of the supply chain. In this case it is considered that all demand should be met regardless of the relationship between the marginal cost of production and the selling price of the product. For a p potential deficit in demand attention the cost is assumed to be "infinite" by forcing the model to meet as much demand as possible.
•  Maximize the operational profit calculated as the difference in sales revenue less production costs. In this case, the demand is met only in cases where it generates profit, i.e. until the marginal cost of production are letter or equal to the selling price of the product; the cost of the deficit is assumed equal to zero.

 The following are the costs considered:

•  Production Costs at the Processing Plants: they are related to the variable cost of production that is derived from the operation of the processing plants, depending on the level of activity of the production system. The following costs are considered: supplies, ordinary hours and overtime. To establish the total cost of supplies it is necessary to know the unit costs of the supplies in each of the processing plants. These costs can be considered as exogenous, independent of the chain operation (bought supplies), or as endogenous, dependent on the operation of the chain (supplies produced in the supply chain). In addition, production formulas that determine the unit consumption of resources according to production under the different technologies that exist in processing plants are required.
•  Inter-Facility Transportation Costs: relate to the cost of transporting raw materials, supplies and industrial products between the facilities that make up the supply chain. They are usually set based on the associated freight between sites for the different materials and for different modes of transport.
•  Inventory Costs: are related to the cost associated with inventories stored at the different facilities that make up the chain. Conventionally they are associated with:

Financial costs generated by the opportunity cost of the economic value of stored inventories, it can be calculated as a fraction of the cost of the stored material

Inventory management costs that correspond to a direct cost generated by inventory existence, such as cooling costs that may require a certain type of product.

Storage cost, corresponds to an additional cost that is paid when the capacity of the warehouse is exceeded, can be associated with a penalty or to the cost of renting space/volume.

•  Sales Revenue: generated at the time of sale products in consumption areas

 3.     ENTERPRISE WIDE OPTIMIZATION

 Unsurprisingly, the power of computing, the structure of organizations and the structure of mathematical models have evolved over time. Based on the fundamental concepts of tactic planning, expressed in the book “Planning Production, Inventories, and Work Force” written, during the 1950s of the last century, by Charles Holt, Franco Modigliani (Nobel Prize), John F. Muth, Herbert A. Simon (Nobel Prize), Charles P. Bonini and Peter R. Winter the models have evolved together with the practices of the business planning, which in modern times have followed the following steps:

1.   SCM: Supply Chain Management

2.   S&OP: Sales & Operations Planning

3.   IBP: Integrated Business Planning

 Companies committed to Prescriptive Advanced Analytics as decision support, mathematical modeling has been extended to go cover the holistic view of the organization, increasingly large and globalized. We have gone from a coordinated vision of decisions: feeding a model to another model, the vision of integrated, multiple models assembled in a big model. This allows you the computing power to which we have access. It has gone from a coordinated view of decisions: one model feeding to another model, to the integrated vision, multiple models assembled into a single large model; this is allowed by the computing power to which we have access. The diagram, built from a diagram included in the digital item "Beyond Supply Chain Optimization to Enterprise Optimization" of Professor Jeremy Shapiro, allows to visualize the concepts expressed. This holistic vision of globalized industrial systems is known as Enterprise Wide Optimization (EWO) and may be equivalent to Integrated Business Planning (IBP).

4.     STATE-OF-THE-ART MODELING OF SALES & OPERATIONS PLANNING

 Traditionally, Sales and Operations Planning (S&OP) is an integrated management process of business through which the executive leadership team continually achieves focus, alignment and synchronization of production planning from a sales forecast. S&OP includes an updated forecast of goals that leads to a set of plans for several functions of the organization (sales, production, inventory, deliveries, development of new products, and financial).

Quantitatively, short product life cycles and high volatility of demand require more frequent review of S&OP. Depending on the speed of industrial processes, S&OP may allow scheduling of supply chain activities (operational decisions).

A properly implemented S&OP process, permanently reviews the demand of products and the supply of raw materials and supplies. The re-planning process focuses on the changes that occur with respect to the previously agreed plan, while helping the management to understand how the company achieved its current productivity, its main goal is to anticipate future results and plan activities for it.

 Considering the current state of optimization technologies, the correct S&OP must be supported in a mathematical programming model, whose origin is based on the aggregate production programming specified in the fundamental work done by Holt, Muth, Modigliani, Simon, Bonini and Winters. Today, and for several decades now, the traditional S&OP mathematical model is limited to planning production taking as border conditions: i) sales, ii) preventive maintenance, iii) financial budget, and iv) the workforce.

However, the power of current computers allows to integrate (endogenizar), in a single model, the definition of the system environment, so that the values of these variables are part of the results of the optimization algorithm, so just to approach an optimal solution from a holistic point of view that consider the organization as a 'unique' entity and not as separate watertight, each with a definition of what should be its optimal behavior.

In short an S&OP model at the level of the state-of-the-art must integrates the following systems: i) production, ii) marketing & sales, iii) financial budgets, iv) human resources, v) sourcing/procurement, vi) distribution, vii) maintenance and viii) energy/water (industrial services). An S&OP model can analyze scenarios that provide an optimal holistic solution; it will be better than the union of multiple solutions obtained individually by each function (sub-system), taking the remaining systems as a boundary condition. All the above functions can be included in OPCHAIN-S&OP/BEER.

The following diagram describes the above.

According to the OPCHAIN-S&OP/BEER development form, based on the OPTEX Expert Optimization System, the modernization of the S&OP process can be visualized as integrating multiple mathematical models that can be used individually, or integrated according to decisions and/or studies supported by the DSS.

For more information the reader is invited to consult:

• Enterprise Wide Optimization – Integrated Financial & Industrial Operations Planning

https://www.dhirubhai.net/pulse/enterprise-wide-optimization-financial-industrial-jesus-velasquez/

• Enterprise Wide Optimization - Transfer Pricing Optimization

https://www.dhirubhai.net/pulse/enterprise-wide-optimization-transfer-prices-jesus-velasquez/

• Advanced Supply Chain Optimization. Traditional & State-of-The-Art Models

https://www.dhirubhai.net/pulse/supply-chain-optimization-jesus-velasquez/

5.     COMPUTATIONAL IMPLEMENTATION

OPCHAIN-S&OP/BEER it was developed using the cognitive robot OPTEX Expert Optimization System, therefore the OPCHAIN-S&OP/BEER inherits fundamental principles under which is built OPTEX, making the OPCHAIN-S&OP/BEER a cognitive robot to design, implement and maintain mathematical models of optimization for the beer industry.

For more information the reader is invited to consult:

• OPTEX – Optimization Expert System

https://www.dhirubhai.net/pulse/optex-optimization-expert-system-new-approah-make-models-velasquez/

Based in OPTEX, BEER-EXPRESS may develop new mathematical models to support other functions in the organization (design, inventories, sourcing, production scheduling, available-to-promise, distribution scheduling, … ) or to expand the decisions support by OPCHAIN-S&OP/BEER.

Due to the implementation using OPTEX, OPCHAIN-S&OP/BEER is available in multiple optimization technologies such as: GAMS, IBM CPLEX Optimization Studio, AMPL, FICO Xpress Optimization Suite, IMPL, C, PYTHON, GMPL, … .

 The implementation of the OPCHAIN-S&OP/BEER focuses on a relational information system that storage the data (input and output). All the user interface is generated by OPTEX without computer programming activities, all elements are generated, on-line, by OPTEX.

5. 1    INPUT TABLES

 5. 2    RESULTS

The results of the runs of the models can be presented in any visualizer oriented to handle a large amount of data.

6. SUPPLY CHAIN MATHEMATICAL MODELS SUPPORT BY DECISIONWARE

 The following diagram shows the functions of the models that DW supports to complement the services offered by OPCHAIN-S&OP/BEER. All models can be deployed by sharing the same data model, so that connectivity between models is through the information system.

More information about models and technical publications:

•  Catalogue of Advanced Analytics & Optimizations Mathematical Models

https://www.dhirubhai.net/pulse/advanced-analytical-optimization-models-machine-neural-velasquez/

• Catalogue Techno-Economic Publications

https://www.dhirubhai.net/pulse/catalogue-techno-economic-publications-jesus-velasquez/

• Book Mathematical Programing 4.0 for Industry 4.0 Cyber-Physical Systems for courses in Advanced Applied Optimization.

https://www.dhirubhai.net/pulse/mathematical-programing-40-industry-cyber-physical-book-velasquez/