Case Studies: Supply Chain Optimization Models in a Chemical Company

Abstract

In this chapter, we give a short overview of the supply chain management models that have been used in the past few years by one of the largest international chemical companies. These models have made significant impacts in improving strategic, tactical, and operational supply chain processes. Then, we describe three supply chain optimization model case studies in detail: distribution network optimization; capacity requirement planning; and Web-based production planning/scheduling. For each case study, we describe motivation for developing the supply chain optimization model, requirements, modeling methods, deployment and business impact of the model. Using these case studies we intend to share our lessons learned, and address supply chain management issues that are especially relevant to chemical industry. These models utilize mathematical programming, discrete-event simulation, and Web-enabling technologies.