IEM MDP: Colloquium, Bas Perik

Title

Data-driven Streamlining of Salt Replenishment Flows Using Hybrid Modelling at Bolk Business Improvement Inc.

Panel

1st supervisor: Dr. A. (Alexander) Hübl

2nd supervisor: Dr. W.M.C. (Wout) van Wezel

Company supervisor: N. (Niek) Tijink (Bolk Logistics BV)

Abstract

This research focuses on introducing an alternative production planning method for salt items manufacturer Salins. Taking the highly disruptive environment into account, a Discrete-Event Simulation model was created with insights from a process analysis to reproduce the production process at Salins. Hereafter, a Reorder Policy was implemented into the simulation model and optimized using analytical as well as experimental concepts. By introducing the optimal Reorder Policy service levels increased from 91% in the current planning situation to 94% on average. Moreover, total cost of replenishment reduced from 3,373 to 3,030 euros per day. Furthermore, a scenario is explored to divest a compartment of the warehouse to save costs based on the FGI inventory levels in the alternative optimal Reorder Policy. A hybrid modelling approach is studied in an additional scenario to further improve the service levels. A Long Short-Term Memory algorithm is proposed in combination with the production simulation model, predicting raw material requirements based on customer demand in an iterative manner. Results show that the hybrid modelling approach improves service levels to 97% which is promising for the convergence to the desired 98%.

Additional Info.

Please confirm your participation to Betsy van Rooij-Oldenboom (j.e.van.rooijoldenboom@rug.nl). She will put your name on the attendance list (RED BOOK) after the colloquium is finished.