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Network production planning method

  • US 7,873,429 B2
  • Filed: 12/09/2005
  • Issued: 01/18/2011
  • Est. Priority Date: 12/10/2004
  • Status: Active Grant
First Claim
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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:

  • 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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