Analytics Magazine Analytics Magazine, May/June 2014 | Page 39

design, the outcome from operational testing is passed back into strategic optimization. Once the structural backbone of the supply chain and product flow is modeled, the next step is to improve operational complexity and distribution. OPERATIONS Production scheduling. In many production processes, setup times are conditional on the sequence in which operations are performed on a single machine. Batch size is therefore a crucial decision because it determines how often changeovers need to be done and determines product availability in the warehouse, which affects dispatch to customers. Scheduling problems become even more complex when the same job can be performed on different machines with varying degrees of efficiency. Using complex combinatorial math optimization with column generation to optimize production schedules, product throughput and asset utilization can be improved by up to 5 percent. Site design. Simulation is again an ideal tool when production, transport or other capabilities need to be designed or redesigned to support operational changes, in 6