Case Study

Network Optimization and Production Modeling for Growing Markets

Understand the capacity of the existing network

Calculate when to build new capacity

Know the best locations for new plants and DCs

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Network Optimization and Production Modeling for Growing Markets

Challenge

A multinational food manufacturing company is experiencing rapid growth in the Latin American market. In order to meet the growing demand for their products they needed to create a model to help determine their supply chain needs over the coming five years. Their existing spreadsheet-based tools could no longer handle the complexities facing the company. They needed a tool to model baseline production and packaging capacity, determine where and when additional capacity would be needed and perform cost analysis to determine how best to increase capacity.

Solution

The company had a strong team of supply chain designers and modelers, but they needed a more powerful modeling tool that would let them optimize and simulate both their current and future networks. They found that LLamasoft® Supply Chain Guru® could create a model incorporating BOMs, production details and times, transportation policies, supplier lead times and purchasing rules, changeover times, and all other pertinent details pertaining to the Latin American market. LLamasoft also provided training for the company’s supply chain design team and helped them build the initial model.

Results

Using Supply Chain Guru, the food manufacturer was able to answer important questions about their bourgeoning Latin American market. Equipped with models built in Supply Chain Guru they know which production lines will reach capacity and when, and at what point to increase productivity of a line versus purchasing additional line capacity or building a new plant. They can also identify the best locations for new facilities to balance capacity across the network, minimize transportation costs and maximize profits. Working with LLamasoft programs the company can maximize the profitability of the expansion they are seeing in Latin America.

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