Optimal Production Scheduling in the Dairy Industries

This work presents the application of a Mixed-Integer Linear Programming (MILP) model that was previously developed in our group for the lot-sizing and production scheduling problem in a real-life industry. In particular, the case of yoghurt production, a representative food process, in a large-scale dairy facility from Greece is studied in detail. The model takes into account all constraints typically met in production scheduling (inventory limitations, material balances, equipment capacity, etc.) having as major objective the minimization of cost. New information regarding new orders, order modifications and/or cancellations and deviations of actual to planned production is considered by utilizing a rolling horizon algorithm. The suggested solution strategy has been successfully integrated with the industrial partner's system to facilitate the decision-making process for the production scheduling of the facility.