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

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.