Multi-product allocation and distribution

Abstract

This paper describes techniques used by a beer company to optimise the allocation and distribution of their beer. These techniques are also applicable to other manufacturing and distribution environments. Of particular interest is a two-phase model that allows a "look-ahead" to future sales, the decomposition of the problem into a large number of sub-problems (to reduce solution time), and the equitable distribution of material when stocks are over- or undersupplied. The optimisation is part of an interactive planning system, and the relationship between the optimisation module and the rest of the system is briefly described.