An optimization-based decision support system for strategic planning in a process industry: the case of aluminium company in India

Abstract

We describe how a generic multi-period optimization-based decision support system (DSS) can be used for strategic planning in process industries. The DSS is built on five fundamental elements—materials, facilities, activities, storage areas, and time periods. It requires little direct knowledge of optimization techniques to be used effectively. Results based on real data from an aluminium company in India demonstrate significant potential for improvement in profits. We conclude with a comparison of similar studies in two other process industries.

Keywords:

• practice of OR
• decision support systems
• optimization
• production

Acknowledgements

This work has been supported by grants from the Research and Publication Committee of the Indian Institute of Management, Ahmedabad, India.