A Mixed Integer Linear Program for Operational Planning in a Meat
Packing Plant
V
´
ıctor M. Albornoz
1
, Marcela Gonz
´
alez-Araya
2
, Mat
´
ıas C. Gripe
1
and Sara V. Rodr
´
ıguez
3
1
Departamento de Industrias, UTFSM, Avda. Santa Mar
´
ıa 6400, Santiago, Chile
2
Departamento de Modelaci
´
on y Gesti
´
on Industrial, Universidad de Talca, Talca, Chile
3
Facultad de Ing. Mec
´
anica y El
´
ectrica, Universidad Aut
´
onoma de Nuevo Le
´
on, San Nicol
´
as de los Garza, M
´
exico
Keywords:
Production Planning, Meat Industry, Mixed-Integer Linear Program, Product Perishability, Meat Supply
Chain.
Abstract:
This paper reports a mixed integer linear programming model to support the planning at an operational level in
a meat packing plant. The deterministic formulation considers multi-products (yielded from different cutting
patterns applied to the carcasses), multi-periods, a batch quality distribution on carcasses and perishability.
The perishability of the product is modeled by the inclusion of disaggregated inventory decision variables that
take into account a given maximum number of days for fresh product. The main contribution of the present
work is to develop an optimization model in a real tactical planning problem. Also we develop a sensitivity
analysis on the quality of the carcasses, subject to large variability. We present here two different scenarios,
comparing them to asses their economical impact.
1 INTRODUCTION
Pork is the most produced and consumed meat world-
wide. In 2012, with a global production of approxi-
mately 109 millions of tonnes, pork continues to be
the most important protein source for humans (FAO,
2014). In recent years it has been observed that
most pork production is starting to be produced un-
der larger productive structures called Pork Supply
Chains. Inside these structures several complex prob-
lems are faced by the chain manager, who needs to
integrate the stakeholder operations in order to coor-
dinate the flow of product through the chain. One of
the most challenging problems is that related to the
planning and scheduling of operations for processing
the carcass (body of the animal gutted and bloodless)
into pork and by-products, taking into account verti-
cal integration links.
Operations Research is one of the most important
disciplines that deal with advanced analytical meth-
ods for decision making. It is applied to a wide
range of problems arising in different areas and their
fields of application involve the operations manage-
ment of the agriculture and food industry. There are
several works related to these topics, see (Ahumada
and Villalobos, 2009) for a review of agricultural sup-
ply chains; see (Bjørndal et al., 2012) for a review of
operations research applications in agriculture, fish-
eries, forestry and mining; see (Higgins et al., 2010)
for an application of agricultural value chains using
network analysis, agent-based modeling and dynam-
ical systems modeling; In (Pl et al., 2014) the au-
thors draw insights for new opportunities regarding
OR for the agricultural industries; (Rodrguez et al.,
2014) presents a key description of the pork supply
chain and points out the existing gaps in this topics.
In particular, there are numerous references that
consider models and strategies using methodologies
such as linear optimization models, see e.g. (Ro-
drguez et al., 2012); integer programming, see e.g.
(Jena and Poggi, 2013); nonlinear, see e.g. (Henseler
et al., 2009) multiobjective, see e.g. (Annets and Aud-
sley, 2002); dynamic programming, see e.g. (Gigler
et al., 2002); stochastic programs, see e.g. (Ahumada
et al., 2012); robust, fuzzy, see e.g. (Biswas and Pal,
2005); optimum control models, see e.g. (Dong et al.,
2013); decision theory models, see e.g. (Zangeneh
et al., 2002). For more details about the listed pre-
vious methodologies see e.g. (Pardalos and Resende,
2002).
In this paper, we present a mathematical optimiza-
tion model to support the decision making process
that focuses on the processing phase of the pork pro-
duction process, taking into account a supply chain
254
M. Albornoz V., González-Araya M., C. Gripe M. and V. Rodríguez S..
A Mixed Integer Linear Program for Operational Planning in a Meat Packing Plant.
DOI: 10.5220/0005211102540261
In Proceedings of the International Conference on Operations Research and Enterprise Systems (ICORES-2015), pages 254-261
ISBN: 978-989-758-075-8
Copyright
c
2015 SCITEPRESS (Science and Technology Publications, Lda.)
context. Regarding agricultural supply chains (ASC),
authors in (Ahumada and Villalobos, 2009) identified
four main functional areas: production, harvest, stor-
age and distribution. In this work, we want to handle
the production and storage first, leaving distribution
for future work. For ”harvest” models especifically
applied to pork supply chains, see (Rodrguez et al.,
2009), regarding sow farms. In particular, we for-
mulate a linear mixed integer program (MILP) that
addresses decisions at the operative level of the pro-
cessing phase in a meat packing plant. In Section 2,
we outline some background information on the pork
industry through a literature review to frame and mo-
tivate our work. In Section 3 we describe the details
of the problem. Section 4 describes the mixed integer
linear programming formulation that, indicates how
often a cutting pattern is applied and on which type of
carcase, in order to keep a certain level of inventory,
meeting demand requirements and other storage ca-
pacities. Section 5 summarizes the computational re-
sults and finishes with a sensitivity analysis on some
stochastic parameters. Section 6 summarizes the main
conclusions and discusses future work.
2 LITERATURE REVIEW
The planning in a meat packing plant has been stud-
ied by several authors. Although most of the exist-
ing literature targets beef production, these contribu-
tions can also be applied to pork production as we
will show later. To the best of our knowledge, the
first contribution was done by (Whitaker and Cam-
mel, 1990), who presented a linear programming for-
mulation of a partitioned cutting stock problem ap-
plied in a meat industry. The main feature of their for-
mulation is the partitioning of cutting patterns among
carcass sections that vastly reduces the number of cut-
ting patterns in the formulation. However, such model
was devoted to market planning purposes, and con-
sequently lacks elements that support the production
planning, such as inventory and time horizon, among
others.
Years later (Stokes et al., 1998) presents a contri-
bution for a Meat Packing Plant production plan, us-
ing a Mixed Integer Goal Programming formulation
to pursue multiple objectives, however such a model
does not take into account that in a given batch there
may be different types of carcasses, and variations in
some parameters. (Bixby et al., 2006) presents an in-
tegrated system of 45 linear programming models to
schedule operations in a real case for Swift & Com-
pany, a beef meat packing plant. Several thesis dis-
sertations have also been found in the literature. One
of these (Wikborg, 2008) develops online optimiza-
tion techniques for determining which cutting pattern
to use in each carcass according to both carcass at-
tributes and demand. (Reynisdottir, 2012) presents
a linear programming formulation to maximize the
value of pork products. (S
´
anchez, 2011) develops a
DEA study on some parameters and uses a planning
model to determine the levels of pork production by
product. (Sanabria, 2012) develops a planning pro-
duction model for a beef meat packing plant but with-
out including multi-periods.
Unlike the approaches existing in the literature,
the proposed model takes into consideration a plan-
ning horizon, different type of products, raw material
availability, and regards the quality and availability of
carcasses from pigs supplied. Also, our approach con-
siders the perishability issue through the modeling of
a specific variable that manages the freshness of meat,
and more importantly, we realize and consider the ex-
istence of different types of carcasses in a batch of
pigs. On the other hand, biological and economical
parameters in pork production systems are subject to
large variations (like the weight of the animal or its
fat content), but no previous study has assessed the
economic impact of these variations. Hence, our ap-
proach aims to cover some of the gaps found in the
literature related to the animal’s yield and its impor-
tance.
3 PROBLEM DESCRIPTION
The pork supply chain involves several operations for
producing pork and by-products from pigs. Usually
in an integrated structure each chain echelon is spe-
cialized in one or two productive operations. The fat-
tening farms are in charge of producing fattened pigs
ready to be slaughtered. Slaughter and packing op-
erations are usually developed in two facilities: the
Slaughterhouse and the Meat Packing Plant (MPP).
For our formulation lets assume that they are located
close to one another and are both part of a MPP. Every
day, a batch of fattened pigs arrive at the MPP facility
by truck. The truck is unloaded and the pigs are kept
in a pen waiting for the slaughtering time. Slaughter-
ing operations are straightforward; slaughter the en-
tire batch of pigs because inventory of pigs is not pos-
sible. Once the entire batch of pigs is slaughtered,
the carcasses (carcass means body of the slaughtered
animal with the head, limbs, blood and entrails re-
moved) are sent to a freezing storing room where the
carcasses are kept for a period of time in order to de-
crease carcass temperature. The carcasses are pro-
cessed forward to obtain several pork products and
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255
sub-products.
Pork production planning at operative levels in-
volves determining the production levels of each
product and its level of inventory. These decisions
depend on how to cut up the carcasses in order to sat-
isfy consumer demand. Several cutting patterns exist
in the market; each cutting pattern entails its corre-
sponding set of products, specific rewards and operat-
ing costs. It can be possible that different cutting pat-
terns share a common product, that means a specific
product can be obtained through different cutting pat-
terns, but the yield per product obtained is related to
the cutting pattern used. However, the yield per prod-
uct depends not only on the cutting pattern applied on
the carcass but also on the quality of the carcass (raw
material). Hence, it is important to select the right
cutting pattern for each type of carcass. This prob-
lem in an isolated way could be tackled through data
analysis, but in practical implementation, its interac-
tion with the demand makes it much more complex
to solve. In the production planning at the operative
level the chain manager must consider not only the
yield of products, and carcass availability, but also
the demand behavior. Demand behavior is not con-
stant through time, and moreover it is not homoge-
neous among all pork products, each product has its
own level of demand. Such issues are particularly rel-
evant in a disassemble problem like the production of
pork. There exists a set of pork products (from the en-
tire carcass) with a large demand while other products
have small or no market at all. Hence, the major dif-
ficulty is to balance the benefits between demand and
production, while managing inventories of perishable
products. The main concern here is to determine the
number of times each cutting pattern is applied to the
available carcasses, and the levels of production ob-
tained for the entire list of products.
Large variability, uncertainty, perishability, large
scale of operations and large lead times are some is-
sues that most pork supply chain managers must face
at the operational level.
4 MATHEMATICAL
FORMULATION
This section provides a detailed description of the
mathematical formulation designed to solve the
described problem and also to support the decision
making at an operative level. Major decisions of
this model include the number of times each cutting
pattern must be applied on the available carcasses in
each period of time, the total yield per product and
its corresponding levels of inventory. It is assumed
that the company is willing to allow unsatisfied
demand, and it is this unsatisfied demand which
measures the level of demand to be covered by other
stakeholders (meaning the company must buy those
products from its competitors). The model addresses
these decisions using an objective function that seeks
to maximize the revenue of the producer, taking
into consideration different constraints to represent
demand requirements, inventory balance, cutting
pattern yields, shelf life of fresh products, balance
between the section of the animal, warehouse capaci-
ties and labor availability in the production process.
The proposed model considers the following notation:
Sets and indexes:
t T : Planning horizon (days).
j J
k
: Set of cutting patterns per sections.
j J: Set of the whole cutting patterns.
i P: Set of Products.
k K: Set of sections per carcass.
l L: Shelf life for fresh products.
p
f
i
: Selling price per fresh product i .
p
c
i
: Selling price per frozen product i.
c
j
: Operational cost of pattern j .
c
e
j
: Operational cost of pattern j in overtime.
u
c
: Freezing cost per kilogram.
CM
f
l
: Holding cost of fresh product.
CM
c
: Holding cost of frozen product.
CME: Holding cost by outsourcing.
s
f
i
: Penalization for unsatisfied-demand.
of fresh product
s
c
i
: Penalization for unsatisfied-demand.
of frozen product
CT
t
: Freezing tunnel capacity at period t.
D
f
it
: Demand of fresh product i in period t.
D
c
it
: Demand of frozen product i in period t.
CI
f
: Warehouse capacity for fresh products.
CI
c
: Warehouse capacity for frozen products.
t
j
: Cutting-operation time for pattern j.
T
w
: Available work hours.
T
w
E: Available overtime hours.
r
i j
: Yield of product i in cutting patern j.
τ: Minimun period of time that a product.
must stay in the warehouse before sale.
H
t
: Carcasses available to process in each period.
Decision Variables:
z
jt
: Number of times to perform the cutting
pattern j in period t in normal work hours.
z
e
jt
: Number of times to perform the cutting
pattern j in period t, in overtime.
x
f
it(t+l)
: Quantity of fresh product i to process.
in period t to be sold at t + l
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x
c
it
: Quantity of frozen product i to
process in t.
v
f
it
: Quantity of fresh product i to be sold in t.
v
c
it
: Quantity of frozen product i to be
I
c
it
: Quantity of frozen product i to hold in t.
O
t
: Frozen capacity to outsource in period t.
x
it
: Total quantity of product i to be
processed in period t.
d
f
it
: Unsatisfied-demand of fresh product i in t.
d
c
it
: Unsatisfied-demand of frozen product i in t.
The objective of the mixed integer linear pro-
gramming presented here is oriented to maximize the
net profit. The net profit is obtained by calculating
the difference between the incomes from selling the
products yielded by the cutting patterns, minus the
operational costs incurred. These operational costs
involve inventory, freezing costs, unsatisfied-demand
penalties and labor costs to perform the cutting-
patterns. Final output includes fresh and frozen
products.
max
it
(p
f
i
v
f
it
+ p
c
i
v
c
it
u
c
x
c
it
CM
c
I
c
it
)
it
(s
f
i
di
f
it
+ s
c
i
di
c
it
)
t j
(c
j
z
jt
+ c
e
j
z
e
jt
) (1)
itl
(CM
f
l
x
f
it(t+l)
)
t
CMEc
e
t
The optimal solution of the model satisfies a
different set of constraints described next.
Carcass Availability. Cutting patterns are parti-
tioned into sections in order to reduce the number
of different patterns, as explained by (Whitaker and
Cammel, 1990). Thereby, the carcass can be cut in
different sections, and for each section a different cut-
ting pattern can be applied. These constraints ensure
a balance between cutting patterns and the number of
carcasses. Equality is forced because of the infea-
sibility of leaving unprocessed raw material, due to
perishability issues.
H
t
=
jJ
k
z
jt
+ z
e
jt
t T, k K, (2)
Cutting Patterns Yield. In the pork industry, dif-
ferent cutting patterns can be applied on the carcass to
make different products. A cutting pattern is therefore
defined by a combination of a set of products and their
respective yields. It is assumed that a specific product
can be obtained from different cutting patterns, but
not from different sections. In reality, this might not
be the case in some specific products, such as skin,
bones, and trimming. The following constraint calcu-
lates the total number of products, retrieved from all
the cutting patterns applied in each period.
x
it
=
jJ
k
r
i j
z
jt
+ z
E
jt
i P, t T, (3)
Available Daily Work Hours. These constraints
ensure that the labor time does not exceed the viable
working hours.
jJ
k
z
jt
t
j
T
w
t T (4)
jJ
k
z
e
jt
t
j
T
E
w
t T (5)
It is recognized that the pork industry works with
perishable products subject to spoilage. In order to
extend the life of the product, it undergoes a freezing
process. Thereby, a product can be sold in two pre-
sentations, fresh and frozen. A product is considered
fresh if it is sold within 4 days after elaboration. On
the other hand, frozen products can be kept for almost
2 years. However, the profit of selling frozen products
decays considerably.
Fresh and Frozen Balance: This constraint de-
termines the amount of product to be frozen and the
amount to keep fresh to be sold in the next period.
x
it
=
lL
x
f
it(t+l)
+ x
C
it
i P, t T (6)
Fresh Product to be Sold. As mentioned, fresh
products are not allowed to be kept for more than 4
days. Constraint (7) calculates the total amount of
fresh products that can be sold in a period t, but were
produced in previous periods.
v
f
it
=
lL
x
f
i(tl)t
i P, t T (7)
Frozen Product to be Sold. Fresh products need
to stay at least 2 days in the freezing tunnel, to be
considered frozen. The following constraint balance
the inventory of frozen products for each period.
v
c
it
= I
c
i(t1)
+ x
C
i(tτ)
I
c
it
i P, t T (8)
Demand of Frozen Products. Ensures that the
requested level of each frozen product is adressed, al-
lowing the existence of unsatisfied-demand if the raw
materials are insufficient.
v
c
it
+ d
c
it
= D
c
it
i P, t T (9)
Demand of Fresh Products. Ensures that the
requested level of each fresh product is adressed,
allowing the existence of unsatisfied-demand if the
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257
raw materials are insufficient.
v
f
it
+ d
f
it
= D
f
it
i P, t T (10)
Freezing Tunnel Capacity. Fresh products need
to be processed in a freezing tunnel in order to be-
come frozen. The following constraint ensures that
the capacity of this tunnel is never exceeded.
iP
x
c
i(t1)
+ x
c
it
CT
t
t T (11)
Fresh Products Warehouse Capacity. Ensures
that the capacity for holding fresh products is never
exceeded.
L
l=1
L
l
0
=1
l
0
+lL
x
f
i(tl)(t+l)
+
iP
L
l=1
x
f
it(t+l)
CI
f
t T
(12)
Frozen Products Warehouse Capacity. Ensures
that the capacity for holding frozen products is never
exceeded.
iP
I
c
it
O
t
+CI
c
t T (13)
Decision Variables Nature. z
jt
0 and z
e
jt
0 are integer variables. The rest of the decision
variables are all continuous and non-negative i.e.
x
f
it(t+l)
0, x
c
it
0, v
f
it
0, v
c
it
0, I
c
it
0, c
e
t
0,
x
it
0, d
f
it
0, d
c
it
0.
We now explore the proposed model described by
developing experiments, in order to gain knowledge
about its sensitivity when changing some parameters.
5 COMPUTATIONAL RESULTS
In this section a case study is presented in order to il-
lustrate the suitability and advantages of the proposed
optimization model. Instances solved consider 17 dif-
ferent types of pattern, 10 planning periods and a to-
tal of 40 products. This results in a model with 4351
variables, 340 of them integer and 2550 constraints.
All instances of this case were solved using a PC
with Windows 7, i5-3210M CPU @ 2.5GHz and 8Gb
RAM. The modeling software used was IBM ILOG
CPLEX Optimization Studio 12.2 with an academic
license.
Basic parameters were created using market infor-
mation gathered from different pork producers, such
as prices, costs and capacities. Most countries use dif-
ferent patterns producing various products according
to their history and gastronomic culture. In this case,
we opted to use the patterns used by a given Mex-
ican pork firm. Pork carcasses were split up into 5
sections, and for each section a set of cutting patterns
was assigned. In total, the company operates with 17
cutting patterns, and manages 40 pork products with-
out taking into account the products derived from the
skin, head, trotters, tongue and visceras.
The first instance represents a batch of 300 fat-
tened pigs arriving everyday to the meat packing plant
during a horizon period of 10 days.The labor capacity
is considered as 8 hours per day. Moreover, it is also
assumed that the demand is given, and the available
amount of carcasses is fixed and known. One of the
most important and relevant aspects of the model is
that it gives the option to operate with different types
of carcasses. It is assumed that the company oper-
ates with a batch of homogeneous carcasses with av-
erage yield and average fat content. Table 1 considers
5 different types of carcasses, where instance C corre-
sponds to the most common type of carcass, and the
rest are modifications of the previous with a greater
or lower fat content. Each case has a different group
of possible cutting patterns, according to their quality,
and different sets of possible products.
Table 1: Instance composition.
Cases Description Fat Content
A Excellent meat 1.44%
B Exc-Average meat 3.78%
C Average meat 6.05%
D Ave-low yield meat 8.264%
E Low meat 10.44%
In the current work we will focus on the possi-
ble variations of the carcasses. Different types of car-
casses can be defined by a combination of quality (fat
content) and total yield. Table 2 lists the results of the
instances defined above; the first column shows the
optimal value achieved, the second column represents
the percentage of demand met. The third column rep-
resents the percentage of utilization of the warehouses
for frozen and fresh products. And the fourth repre-
sents the labor usage of work hours. The results show
that the rewards increase as the quality of the carcass
increases, as we expected, but also the facilities and
labor capacity have better usage. In Europe and the
USA, fattened pig producers receive a bonus for better
quality of carcasses, but there are some Latin Amer-
ican countries that don’t even evaluate their raw ma-
terial quality. This study suggests that pork producers
can have a bigger benefit if they process high quality
carcasses. The difference between the objective value
of instance A and the objective value of instance E is
around 10%, thus showing a great financial increase
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by having carcasses with better yields. These results
suggest that the model responds to changes in the
quality. Processing higher quality carcasses not only
increases the meat yield, but also gives the producer
the chance to sell high quality lean products, mak-
ing them more competitive in the market and giving
them access to different markets. The increments in
the objective functions are explained because higher
quality carcasses give more revenue to the producer
as he spends less time cutting to produce more quan-
tity of meat, and thus he can fulfill demand require-
ments more efficiently. It is shown that better quality
can give differences up to 10% more profit. Labor
is equal to employment but the use of facilities is re-
duced by 10%. Table 3 lists the results for the number
of times the cutting patterns are applied, in each case.
In the low quality cases, E and D, some patterns tend
to disappear completely, 4 and 5 respectively, while
other patterns reach their peak of usage, for exam-
ple pattern number 11. This clearly shows that some
patterns are better fitted to a certain type of carcasses
than another.
Table 2: Results.
Instance Opt.Value Demand Facilities Labor
A +2.5% +3.6% -9% +0%
B +2.5% +1.2% -4% +0.1%
C 5,875,821 83% 91% 91%
D -3% -1% +2% +0%
E -7% -3% +2% +0%
Table 3: Applied number of patterns for the first instance.
Pattern A B C D E
1 654 536 492 502 517
2 1012 1133 1250 1250 1239
3 834 831 758 748 744
4 45 21 12 0 0
5 807 851 884 930 994
6 1648 1628 1604 1570 1506
7 65 66 68 62 55
8 753 758 768 468 451
9 171 143 159 177 197
10 1511 1533 1505 1793 1797
11 2435 2458 2500 2451 2500
12 65 42 0 49 0
13 1856 1852 1844 1830 1813
14 644 648 656 670 687
15 1266 1266 1266 1317 1400
16 2683 2682 2682 2617 2151
17 1006 1006 1005 1006 1005
Next, a second set of experiments is developed.
In reality the batch of pigs arriving at the meat pack-
ing plant facilities is not composed of homogeneous
pigs. This is so, because the fattening process of a
pig is very variable, pigs dont grow at the same rate
and they have different feed conversion rates. Phys-
ically, these issues are reflected by the presence of
heterogeneous pigs in the fattening batch, those pigs
have different weight and carcass compositions. Al-
though homogeneity is a highly demanded aspect by
the chain manager for better control production, most
producers just rely on the weight of the animals as a
reference to calculate their profits, though the hetero-
geneity in the quality of carcasses in the batch can not
be denied. Carcass composition is only known after
slaughter, and even if pigs do have similar weights
they may present different carcass composition. The
meat yield per product depends on the carcass com-
position. Hence, it is important to study the impact
of different distributions of carcass composition and
which cutting pattern is more worthwhile for each
type of carcass. One of the most important and rel-
evant aspects of the model is that it gives the option
of operating with different types of carcasses. Work-
ing with different types of carcasses at the same time
seems to add complexity to the model, as the reso-
lution time for these cases rises up to a max of 10
seconds in average.
Table 4: Composition of pattern yield for the 2nd instance.
Instance Description
F 50% A and 50% C
G 50% E and 50% C
H 33% A 34% C 33% E
I 20%A 20%B 20%C 20%D 20%E
Table 4 lists a set of instances based on different
distribution of carcasses, while table 5 lists the set of
corresponding results. The results for these instances
are similar to the first set; the instances with better
quality of carcasses always have the highest values
for the objective function, and better operational indi-
cators, showing that in fact the quality of carcasses is
very important to the revenue of these types of pro-
ducers.
Table 5: Results for the 2nd instance.
Instance Obj.Value Demand Facilities Labor
F 5.917.113 82% 86% 61%
G 5.589.634 81% 87% 60%
H 5.746.693 81% 85% 43%
I 5.909.373 81% 95% 28%
Finally, we develop some sensitivity analysis on
critical parameters, such as the number of processed
animals, in order to observe the economic and tech-
nical impact of having the flexibility to choose the
AMixedIntegerLinearProgramforOperationalPlanninginaMeatPackingPlant
259
number of raw materials to process. To study this,
we changed the fixed number of carcasses in each pe-
riod to a decision variable, so the model could choose
the optimal number of raw materials for each time pe-
riod. This analysis is raised regarding the parameter
H
t
. Model (1) - (13) assumes that H
t
is given and
known for every period. Now, we consider H
t
as a
decision variable and we add a new constraint impos-
ing that the sum of this variable does not exceed the
original amount of available carcasses throughout the
time horizon.
Table 6: Value of H in each period of time.
Horizon H
t
1 461
2 309
3 262
4 398
5 374
6 360
7 188
8 272
9 73
10 169
Results in table 6 show that variable H
t
is mainly
influenced by the demand, and only orders the number
of pigs that are really needed. The optimal value of
this instance increases the economic reward by 10%
with respect to the most common case (Instance C).
Also, the inventory level of ready to sell products de-
creases by 12%, due to a better usage of the different
warehouses capacities, because here the producer is
not forced to use all the material coming to the slaugh-
ter house, so the model can make a better fit of the
demand and sales.
6 CONCLUSIONS AND FUTURE
RESEARCH
In this paper we proposed and validated a mixed inte-
ger model for production planning in the meat indus-
try. The objective of this paper, besides developing a
model that incorporates aspects that were not present
in the current literature, was to extrapolate some op-
erational policies and advices for producers and farm
growers. We accomplish this through the interpre-
tation of the results obtained from the presented in-
stances.
The results explained in the previous sections
show that the formulated model is highly applicable
due to low resolution times (it can be solved using
commercial software) and the easy valuable informa-
tion an employee can extract from it, making the pro-
duction planning more efficient. However, for larger
instances of the model, ones with more periods, prod-
ucts and patterns, we can’t assure yet that it will be
solvable, because of the exponential growth of the in-
teger variables. Although the instances tested here
were developed to fit the reality of the industry, larger
cases can exist in reality, due to the variable size of
the patterns available across different countries.
According to the results obtained from the experi-
ments with different quality carcasses, our suggestion
is that producers and farmers should develop a quality
system to guarantee the yields (more than the weight)
of the raw material that they sell/work with, to ensure
satisfying levels of revenue for both. The difference
between the objective function and the other opera-
tional indicators are significant enough to make ef-
forts towards this area, obtaining better usage of their
machinery, man-labor, time available and demand ful-
fillment.
Future research in this area should go towards
the development of a stochastic model that takes into
account probabilites for different types of arriving
batches, to make the production planning more ro-
bust. Also, efforts should be made to test the com-
plexity of the model as available cutting patterns
grow.
ACKNOWLEDGEMENTS
This research was partially supported by CONICYT,
Departamento de Relaciones Internacionales ”Pro-
grama de cooperacin Cientfica Internacional (Grant
PPCI 12041), DGIP of Universidad Tcnica Federico
Santa Mara (Grant USM 28.13.69) and CIDIEN of
the Departamento de Industrias, Universidad Tcnica
Federico Santa Mara. Matas C. Gripe wishes to ac-
knowledge Graduate Scholarship from DGIP.
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