Skip to main content

Data-Driven Decision Making for Strategic Production Planning in a Brewing Company

  • Conference paper
  • First Online:
Operations Research Proceedings 2021 (OR 2021)

Part of the book series: Lecture Notes in Operations Research ((LNOR))

Included in the following conference series:

  • 645 Accesses

Abstract

Changing consumer preferences present a difficult challenge to the brewing industry and hence necessitate adaptations of the production system due to changed requirements. Beer manufacturing is subject to restrictive dependencies, such as lead times, shelf life, multilevel processes, and storage tank restrictions. Therefore, we propose a multilevel capacitated lot-sizing problem (MLCLSP) that covers brewery-specific constraints. The investigated brewing company produces 220 finished and 100 semifinished products on 13 production and 8 storage resources within 3 production levels. Since the brewery-specific MLCLSP cannot be solved within reasonable computing time in the case at issue, we introduce a priority-based fix-and-relax-and-optimize heuristic. We present a computational study and managerial insights regarding changes in consumer preferences (i.e., additional products with low demand). We prove that the priority-based strategy dominates the standard strategy in solution quality and computation time. Furthermore, we demonstrate the potential of the MLCLSP-based planning approach for strategic decision making by revealing the impact on the entire production system.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Förster, A., Haase, K., Tönnies, M.: Ein modellgestützter Ansatz zur mittelfristigen Produktions- und Ablaufplanung für eine Brauerei. J. Bus. Econ. 76(12), 1255–1274 (2006). https://doi.org/10.1007/s11573-006-0061-5

  2. Baldo, T.A., Santos, M.O., Almada-Lobo, B., Morabito, R.: An optimization approach for the lot sizing and scheduling problem in the brewery industry. Comput. Ind. Eng. 72, 58–71 (2014). https://doi.org/10.1016/j.cie.2014.02.0080360-8352

    Article  Google Scholar 

  3. Billington, P.J., McClain, J.O., Thomas, L.J.: Mathematical programming approaches to capacity-constrained MRP systems: review. Formul. Probl. Reduct. Manag. Sci. 29, 1126–1141 (1983). https://doi.org/10.1287/mnsc.29.10.1126

    Article  Google Scholar 

  4. Mickein, M., Koch, M., Haase, K.: A decision support system for brewery production planning at Feldschlösschen. J. App. Anal. (2021). https://doi.org/10.1287/inte.2021.1101

    Article  Google Scholar 

  5. Stadtler, S., Sahling, F.: A lot-sizing and scheduling model for multi-stage flow lines with zero lead times. Eur. J. Oper. Res. 225, 404–419 (2013). https://doi.org/10.1016/j.ejor.2012.10.011

    Article  Google Scholar 

  6. Stadtler, H.: Multilevel lot sizing with setup times and multiple constrained resources: internally rolling schedules with lot-sizing windows. Oper. Res. 51, 487–502 (2003). https://doi.org/10.1287/opre.51.3.487.14949

    Article  Google Scholar 

  7. Helber, S., Sahling, F.: A fix-and-optimize approach for the multi-level capacitated lot sizing problem. Int. J. Prod. Econ. 123, 247–256 (2010). https://doi.org/10.1287/opre.51.3.487.14949

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Markus Mickein .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Mickein, M., Koch, M., Haase, K. (2022). Data-Driven Decision Making for Strategic Production Planning in a Brewing Company. In: Trautmann, N., Gnägi, M. (eds) Operations Research Proceedings 2021. OR 2021. Lecture Notes in Operations Research. Springer, Cham. https://doi.org/10.1007/978-3-031-08623-6_55

Download citation

Publish with us

Policies and ethics