The Kellogg Company Optimizes Production, Inventory, and Distribution
The Kellogg Company Optimizes Production, Inventory, and Distribution
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DOI:
10.1287/inte.31.6.1.9646
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发表时间:
2001-11
期刊:
影响因子:
--
通讯作者:
Gerald G. Brown;J. Keegan;Brian Vigus;Kevin Wood
中科院分区:
文献类型:
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作者:
Gerald G. Brown;J. Keegan;Brian Vigus;Kevin Wood
For over a decade, the Kellogg Company has used its planning system (KPS), a large-scale, multiperiod linear program, to guide production and distribution decisions for its cereal and convenience foods business. An operational version of KPS, at a weekly level of detail, helps determine where products are produced and how finished products and in-process products are shipped between plants and distribution centers. A tactical version of KPS, at a monthly level of detail, helps to establish plant budgets and make capacity-expansion and consolidation decisions. Operational KPS reduced production, inventory, and distribution costs by an estimated $4.5 million in 1995. Tactical KPS recently guided a consolidation of production capacity with a projected savings of $35 to $40 million per year.