Model to define the optimal production program in a food processor SME optimizing economic resources

César Alanís Díaz, Edgar Marco Aurelio Granda Gutiérrez, Refugio Chávez Hernández

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Currently SMEs in the food industry in Mexico have areas of opportunity due to their accelerated growth. One of the areas of opportunity detected is their limited production planning. Being their main goal to meet the demands of customers, they do not have implemented a program or model for the production planning which leads to unforeseen expenses. Due to this, there is a need to design a model to program the production taking into account the restrictions that each company presents. Also, develop a series of steps so that any SME in the food industry can carry out this model. The company that will be taken as a reference to design the model is Valores Alimenticios S.A. of C.V. This company is dedicated to the manufacture of frozen sweet bread and has more than 100 Sku's. The company needs a production program that solves some of the problems it currently has. For the design of the methodology, mathematical models will be made using linear programming and simulations taking into account the demand, inventory and production of the company of reference. A simulation was made using ProModel of the inventory policy determined for a production line. Annual savings of $840,739.60 were defined due to a reduction in costs due to over inventory and shortages.

Original languageEnglish
Title of host publicationProceedings of the International Conference on Industrial Engineering and Operations Management
PublisherIEOM Society
Pages2456-2468
Number of pages13
Volume2018
EditionSEP
Publication statusPublished - Sep 2018
Event3rd North American IEOM Conference. IEOM 2018 -
Duration: 27 Sep 201829 Sep 2018

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management

Conference

Conference3rd North American IEOM Conference. IEOM 2018
Period27/9/1829/9/18

Fingerprint

Economics
Industry
Planning
Economic resources
Food
Small and medium-sized enterprises
Linear programming
Mathematical models
Food industry
Simulation
Production planning
Costs
Mathematical model
Shortage
Savings
Inventory policy
Mexico
Expenses
Bread
Production line

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research
  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering

Cite this

Díaz, C. A., Gutiérrez, E. M. A. G., & Chávez Hernández, R. (2018). Model to define the optimal production program in a food processor SME optimizing economic resources. In Proceedings of the International Conference on Industrial Engineering and Operations Management (SEP ed., Vol. 2018, pp. 2456-2468). (Proceedings of the International Conference on Industrial Engineering and Operations Management). IEOM Society.
Díaz, César Alanís ; Gutiérrez, Edgar Marco Aurelio Granda ; Chávez Hernández, Refugio. / Model to define the optimal production program in a food processor SME optimizing economic resources. Proceedings of the International Conference on Industrial Engineering and Operations Management. Vol. 2018 SEP. ed. IEOM Society, 2018. pp. 2456-2468 (Proceedings of the International Conference on Industrial Engineering and Operations Management).
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Díaz, CA, Gutiérrez, EMAG & Chávez Hernández, R 2018, Model to define the optimal production program in a food processor SME optimizing economic resources. in Proceedings of the International Conference on Industrial Engineering and Operations Management. SEP edn, vol. 2018, Proceedings of the International Conference on Industrial Engineering and Operations Management, IEOM Society, pp. 2456-2468, 3rd North American IEOM Conference. IEOM 2018, 27/9/18.

Model to define the optimal production program in a food processor SME optimizing economic resources. / Díaz, César Alanís; Gutiérrez, Edgar Marco Aurelio Granda; Chávez Hernández, Refugio.

Proceedings of the International Conference on Industrial Engineering and Operations Management. Vol. 2018 SEP. ed. IEOM Society, 2018. p. 2456-2468 (Proceedings of the International Conference on Industrial Engineering and Operations Management).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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Díaz CA, Gutiérrez EMAG, Chávez Hernández R. Model to define the optimal production program in a food processor SME optimizing economic resources. In Proceedings of the International Conference on Industrial Engineering and Operations Management. SEP ed. Vol. 2018. IEOM Society. 2018. p. 2456-2468. (Proceedings of the International Conference on Industrial Engineering and Operations Management).