Network production planning method
First Claim
1. A computer implemented 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) obtaining a plurality of planning data values for a given period of time, said planning data values including at least;
i) a plurality of raw material cost structures for raw materials used in the production of the product, wherein each raw material cost structure specifies one or more parameters of a take-or-pay supply contract between a production plant and a raw material supplier;
including at least one of a raw material price, a raw material quantity specified in the take-or-pay contract, a maximum contracted consumption rate, an energy adjustment, a series of prices based on quantity of usage, a forecast price for a raw material, and a spot price;
ii) a value of one or more by-products for each of a plurality of production plants within said network of production plants, wherein each by-product results from processing the raw materials used in the production of the product, and wherein the value for a given by-products specifies a cost of processing that by-product;
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 plants;
vi) a cost of the product;
vii) an availability of the product; and
b) reading a plurality of current data values including at least;
i) a real-time production rate for each of said production plants; and
ii) a real-time consumption for each of said customers; and
c) inputting said planning data values and said current data values into a production planning system;
d) calculating from said inputted planning data values and said current data values;
i) a total network variable cost, wherein the total network variable cost specifies;
i) a plant production quantity;
ii) a plant variable cost;
iii) a total network production quantity; and
iv) the total network variable cost;
e) controlling production within the network of production plants by outputting a plant production quantity for each of said production plants on the basis of the total network variable cost.
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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.
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Citations
27 Claims
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1. A computer implemented 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) obtaining a plurality of planning data values for a given period of time, said planning data values including at least; i) a plurality of raw material cost structures for raw materials used in the production of the product, wherein each raw material cost structure specifies one or more parameters of a take-or-pay supply contract between a production plant and a raw material supplier;
including at least one of a raw material price, a raw material quantity specified in the take-or-pay contract, a maximum contracted consumption rate, an energy adjustment, a series of prices based on quantity of usage, a forecast price for a raw material, and a spot price;ii) a value of one or more by-products for each of a plurality of production plants within said network of production plants, wherein each by-product results from processing the raw materials used in the production of the product, and wherein the value for a given by-products specifies a cost of processing that by-product; 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 plants; vi) a cost of the product; vii) an availability of the product; and b) reading a plurality of current data values including at least; i) a real-time production rate for each of said production plants; and ii) a real-time consumption for each of said customers; and c) inputting said planning data values and said current data values into a production planning system; d) calculating from said inputted planning data values and said current data values; i) a total network variable cost, wherein the total network variable cost specifies; i) a plant production quantity; ii) a plant variable cost; iii) a total network production quantity; and iv) the total network variable cost; e) controlling production within the network of production plants by outputting a plant production quantity for each of said production plants on the basis of the total network variable cost. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A computer implemented H2/CO production load planning method for a plurality of production plants, comprising:
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i) inputting as inputs to a system;
H2 and CO current consumption from consumers connected to the plurality of production plants by a network of pipelines configured for delivery of the H2 and CO, forecasts of demand for H2 and CO from consumers, and H2 purchase price, a plurality of raw material cost structures for the raw materials used in the production of the H2 and CO, wherein each raw material cost structure specifies one or more parameters of a take-or-pay supply contract between a production plant and a raw material supplier, and a value of one or more by-products for each of a plurality of production plants within said plurality of production plants, wherein each by-product results from processing the raw materials used in the production of the product, and wherein the value for a given by-products specifies a cost of processing that by-product; andii) on the basis of the inputs, generating a production plan that allocates production for each of the plurality of production plants in a manner that minimizes variable costs associated with producing the H2 and CO. - View Dependent Claims (13)
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14. A computer implemented method of calculating production for a plurality of production plants within a network of production plants, comprising:
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a) obtaining a plurality of planning data values, a plurality of current data values, and a plurality of past data values, wherein the plurality of planning data values includes at least; i) a plurality of raw material cost structures for the raw materials used in the production of the product wherein each raw material cost structure specifies one or more parameters of a take-or-pay supply contract between a production plant and a raw material supplier;
including at least one of a raw material price, a raw material quantity specified in the take-or-pay contract, a maximum contracted consumption rate, an energy adjustment, a series of prices based on quantity of usage, a forecast price for a raw material, and a spot price;ii) a value of one or more by-products for each of a plurality of production plants within the network of production plants wherein each by-product results from processing the raw materials used in the production of the product, and wherein the value for a given by-products specifies a cost of processing that by-product; iii) a forecast consumption for each of the consumers; iv) a forecast production availability for each of the production plants or a forced production plan; v) a production capacity for each of the production plants; vi) a cost of the product; vii) an availability of the product; and b) calculating a plant production quantity for each plant that minimizes variable costs at each production plant based upon the obtained data. - View Dependent Claims (15, 16, 17, 18, 19)
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20. A computer implemented method of controlling production within a network of production plants to produce and distribute a product to a network of consumers, the method comprising:
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i) obtaining a plurality of planning data values over a time step; ii) reading a plurality of current data values; iii) inputting the planning data values and the current data values into a production planning system; iv) calculating a total network production quantity based upon the planning data values and the current data values input to the production planning system; and v) calculating a plant production quantity for each production plant based upon the total network production quantity, wherein the plant production quantities are calculated to minimize variable costs associated with production of the product at each production plant. - View Dependent Claims (21, 22, 23, 24, 25, 26, 27)
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Specification