An SKU decomposition algorithm for the tactical planning in the FMCG industry

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An SKU decomposition algorithm for the tactical planning in the FMCG industry

In this paper we address the optimization of the tactical planning for the Fast Moving Consumer Goods (FMCG) industry, in which numerous trade-offs need to be considered over possibly thousands of Stock-Keeping Units (SKUs). An MILP model for the optimization of this tactical planning problem is proposed. This model is demonstrated for a case containing 10 SKUs, but is intractable for realistic...

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Tactical planning MILP models for fast moving consumer goods companies are often intractable for realistic applications containing thousands of Stock-Keeping Units (SKUs). Decomposition methods can be applied to these MILP models to allow realistic cases to be optimized. In this paper we present a Multi-SKU decomposition algorithm based on decomposing the full scale MILP model into submodels co...

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ژورنال

عنوان ژورنال: Computers & Chemical Engineering

سال: 2014

ISSN: 0098-1354

DOI: 10.1016/j.compchemeng.2013.11.008