1 Operations Management, Department of Management Engineering, Technical University of Denmark2 Department of Management Engineering, Technical University of Denmark3 Hacettepe University4 University of Groningen5 Technical University of Munich6 Hacettepe University7 University of Groningen
This study addresses a capacitated intermediate product selection and blending problem typical for two-stage production systems in the food processing industry. The problem involves the selection of a set of intermediates and end-product recipes characterising how those selected intermediates are blended into end products to minimise the total operational costs under production and storage capacity limitations. A comprehensive mixed-integer linear model is developed for the problem. The model is applied on a data set collected from a real-life case. The trade-offs between capacity limitations and operational costs are analysed, and the effects of different types of cost parameters and capacity limitations on the selection of intermediates and end-product recipes are investigated.
International Journal of Production Research, 2013, Vol 51, Issue 1, p. 26-42