Production Allocation Modeling System Optimizing for Competitive Advantage in
Production Allocation Modeling System Optimizing for Competitive Advantage in
R Brown
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The constraints (5) state that demand must be met by shipments from the plants. We note that most customers demand only one product. Thus, the total number of constraints (6) is far fewer than KM. The specific models generated by PRAMSYS turned out to be more complex than (PAM) for several reasons. First, the model was extended to distinguish among peak, mid-peak and off-peak operations when the electricity rates vary significantly. Plant shut-downs were modeled more extensively to ensure that ...shut-down periods occur contiguously. Moreover, 14 contracts with the electric utility may be more complicated, involving, for example, terms relating to differences in power draws between peak and off- peak periods. These complications were modeled by straightforward extensions of the modeling techniques used above. Finally, for complex manufacturing sites involving several interconnected plants, the models were extended so that they would choose the plant configurations as well as the slates for each plant.
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