Using Mixed Integer Linear Programming for providing insight into structural improvements in the production planning process at a food production company

This research focusses on gaining insight into structural improvements in the production planning process of a food production company in the Netherlands with the goal to save costs. We develop a mathematical planning model that is able to create production schedules and by means of this model, we test different instances of factors used in the planning process of this company. We find that total costs can be reduced by lowering the standard duration of production batch runs, by keeping safety stocks for critical make-to-stock products and by creating initial production schedules through the use of a mathematical planning model that is able to efficiently combine the production of different recipes and stock-keeping-units over the entire planning horizon.