A Decision Support System, the core of which is a linear programming model, has been developed to optimize the production planning in the herbicide department at Monsanto Antwerp. Given the highly seasonal demand pattern and the limited capacity, careful planning is needed to provide the desired, service levels at a reasonable cost. The PC-based model balances the cost of alternative production resources against inventory holding cost, taking into account production capacity constraints, storage limitations and container availability. Besides being used for tactical planning purposes over an 18-month time horizon, the model can easily be adapted to cover a longer horizon and deal with strategic decisions. Initial results with the model are very promising and the company intends to introduce similar models for other departments.
