Supply Chain Toolworks CTO Shows Value in Economic Production Cycles (EPC) for Food and Beverage Manufacturers

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Dr. Vijay Hanagandi, the Chief Technology Officer of Supply Chain Toolworks, presented a landmark case study on the advantages of Cyclical Production planning over traditional Economic Order Quantity planning. The presentation took place at the 2011 INFORMS conference in Chicago

Supply Chain Toolworks (SCTW) continues to espouse their cutting edge yet practical angle of Operations Strategy Planning. Dr. Vijay Hanagandi’s presentation of, “Economic Production Cycle Planning: A case study in pudding manufacturing” was the thought piece in APICS’ March/April Issue. The case study looks at a pudding production facility and the challenges it faces in both performance and cost control.

Vijay’s presentation explored the past business process of dynamically scheduling—scheduling each week with variable production quantities and frequencies. And he looked at the advantages inherent in pursuing either a traditional Economic Order Quantity (EOQ) approach with fixed production quantities or an Economic Production Cycle (EPC) approach with fixed production frequencies and cycles. In the case of his pudding example and most process manufacturing there were distinct cash flow advantages to the EPC approach as well as organizational benefits from the predictability of fixed cycles.

Supply Chain Toolworks has a long history in finding the highest cash flow solutions for food, beverage, and other process manufacturers through an EPC planning process called Run Strategy Planning.

About Supply Chain Toolworks:

Supply Chain Toolworks, Inc. provides the next generation of Operations Strategy and Planning solutions to manufacturers. It was founded by core team of operations experts with practical experience helping Chief Operating Officers, Vice President’s, and Directors achieve real, strategic change in their organizations. Supply Chain Toolworks focuses on creating new methods and tools for creating high impact Operations Strategies.

Our Philosophy:

We believe lean manufacturing is and will always be a very human business process. It requires both intuition and analytics at the strategic level. We have seen that the “sandbox” approach of leveraging human and computational strengths will always beat the “black box” solution derived by blind computer optimization.

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Steve Johanson
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