Novel network production planning method
First Claim
1. A method of controlling production within a network of production plants to produce and distribute a product to a network of customers, said method comprising:
- a) linking a plurality of production plants and a distribution network to a production planning system, wherein said production plants produce a product, and said distribution network delivers said product to a plurality of customers;
b) obtaining a plurality of planning data values over a time step, said planning data values comprising;
i) a raw material cost structure;
ii) a value of a by-product for each of said production plants;
iii) a forecast consumption for each of said customers;
iv) a forecast production availability for each of said production plants or a forced production plan;
v) a production capacity for each of said production units;
vi) a process operating parameter for each of said production units;
vii) a network operating parameter;
viii) a cost of purchased product; and
ix) an availability of purchased product;
c) reading a plurality of current data values comprising;
i) a real-time production rate for each of said production plants;
ii) a real-time consumption for each of said customers; and
iii) a real-time network operating parameter;
d) reading a plurality of past data values comprising;
i) a past consumption for raw material; and
ii) a past parameter for raw material;
e) inputting said planning data values and said current data values into said production planning system;
f) calculating;
i) a total network production quantity; and
ii) a total network variable cost; and
g) outputting said plant production quantity for each of said production plants.
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Abstract
Methods of production planning, including a novel method of optimized production planning for a plurality of production plants producing a product for delivery to a plurality of customers using a common distribution network, wherein the product consumption by customers can vary, and the variable cost of producing the product can vary between production plants, over time, and production quantity. The method maximizes profitability by characterizing raw material costs over varying production rates and minimizing variable cost across the network for any given production demand. The method considers the variable cost of producing product in varying production quantities, the variable cost structure of raw material supplies, and how these variable costs vary between production plants. The method also considers the variable cost impact of purchasing product from outside sources. The method produces monthly, weekly, daily, or hourly production plans and can automatically set target production quantities for each production plant to provide the lowest variable cost plan for a given production demand.
24 Citations
33 Claims
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1. A method of controlling production within a network of production plants to produce and distribute a product to a network of customers, said method comprising:
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a) linking a plurality of production plants and a distribution network to a production planning system, wherein said production plants produce a product, and said distribution network delivers said product to a plurality of customers;
b) obtaining a plurality of planning data values over a time step, said planning data values comprising;
i) a raw material cost structure;
ii) a value of a by-product for each of said production plants;
iii) a forecast consumption for each of said customers;
iv) a forecast production availability for each of said production plants or a forced production plan;
v) a production capacity for each of said production units;
vi) a process operating parameter for each of said production units;
vii) a network operating parameter;
viii) a cost of purchased product; and
ix) an availability of purchased product;
c) reading a plurality of current data values comprising;
i) a real-time production rate for each of said production plants;
ii) a real-time consumption for each of said customers; and
iii) a real-time network operating parameter;
d) reading a plurality of past data values comprising;
i) a past consumption for raw material; and
ii) a past parameter for raw material;
e) inputting said planning data values and said current data values into said production planning system;
f) calculating;
i) a total network production quantity; and
ii) a total network variable cost; and
g) outputting said plant production quantity for each of said production plants. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21)
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22. A method of controlling production within a network of production plants to produce and distribute a product to a network of customers, said method comprising:
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a) linking a plurality of production plants and a distribution network to a production planning system, wherein said production plants produce a product, said distribution network delivers said product to a plurality of customers, and said distribution network comprises a compressor;
b) obtaining a plurality of planning data values over a time step, said planning data values comprising;
i) a raw material cost structure;
ii) a value of a by-product for each of said production plants;
iii) a forecast consumption for each of said customers;
iv) a forecast production availability for each of said production plants or a forced production plan;
v) a production capacity for each of said production units and said compressor;
vi) a process operating parameter for each of said production units and said compressor;
vii) a network operating parameter;
viii) a cost of purchased product; and
ix) an availability of purchased product;
c) reading a plurality of current data values comprising;
i) a real-time production rate for each of said production plants;
ii) a real-time consumption for each of said customers; and
iii) a real-time network operating parameter;
d) reading a plurality of past data values comprising;
i) a past consumption for raw material; and
ii) a past parameter for raw material;
e) inputting said planning data values and said current data values into said production planning system;
f) calculating;
i) a total network production quantity; and
ii) a total network variable cost; and
g) outputting said plant production quantity for each of said production plants. - View Dependent Claims (23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33)
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Specification