A model for master planning the operations at a extended supply chain: A case study of an automaker

With the development of its supply chain, the production management department is generally in charge of xing the daily mix production, notify the necessity of raw materials to the Purchase department and the logistics department have to deal with the shipping of the products. As a rule, companies use standard MPS/MRP systems and with them deliver plans to its clients and suppliers. We have developed a software tool, base on a MILP model, that is given impressive results. Based on our work in the Ford engine's plant, this paper proposes to explain a practical case of implantation of a planning tool. The MILP deals with: Reducing Shipping costs while improving client's satisfaction; Stabilize production, while minimizing inventory levels and Giving stable plans to the suppliers. The paper presents a model that links those three levels of planning, giving to the user a friendly-interface. The model has been succesfully implemented.