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An optimization-based decision support system for strategic planning in a process industry: the case of aluminium company in India

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  • G Dutta

    (Indian Institute of Management)

  • N Gupta

    (Maersk Group Procurement)

  • R Fourer

    (Northwestern University)

Abstract

We describe how a generic multi-period optimization-based decision support system (DSS) can be used for strategic planning in process industries. The DSS is built on five fundamental elements—materials, facilities, activities, storage areas, and time periods. It requires little direct knowledge of optimization techniques to be used effectively. Results based on real data from an aluminium company in India demonstrate significant potential for improvement in profits. We conclude with a comparison of similar studies in two other process industries.

Suggested Citation

  • G Dutta & N Gupta & R Fourer, 2011. "An optimization-based decision support system for strategic planning in a process industry: the case of aluminium company in India," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 616-626, April.
    • Handle: RePEc:pal:jorsoc:v:62:y:2011:i:4:d:10.1057_jors.2010.8
    DOI: 10.1057/jors.2010.8
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    References listed on IDEAS

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    1. Nicholls, Miles G., 1997. "Developing an integrated model of an aluminium smelter incorporating sub-models with different time bases and levels of aggregation," European Journal of Operational Research, Elsevier, vol. 99(2), pages 477-490, June.
    2. Miles G. Nicholls, 1995. "Aluminum Production Modeling—A Nonlinear Bilevel Programming Approach," Operations Research, INFORMS, vol. 43(2), pages 208-218, April.
    3. Dutta, Goutam & Fourer, Robert & Majumdar, Akhilesh & Dutta, Debabrata, 2007. "An optimization-based decision support system for strategic planning in a process industry: The case of a pharmaceutical company in India," International Journal of Production Economics, Elsevier, vol. 106(1), pages 92-103, March.
    4. Goutam Dutta & Robert Fourer, 2001. "A Survey of Mathematical Programming Applications in Integrated Steel Plants," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 387-400.
    5. Gopal P. Sinha & B. S. Chandrasekaran & Niloy Mitter & Goutam Dutta & Sudhir B. Singh & Aditya Roy Choudhury & P. N. Roy, 1995. "Strategic and Operational Management with Optimization at Tata Steel," Interfaces, INFORMS, vol. 25(1), pages 6-19, February.
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    Cited by:

    1. Rao, Harish Venkatesh & Dutta, Goutam & Basu, Sankarshan, 2014. "Database Structure for a Multi Stage Stochastic Optimization Based Decision Support System for Asset – Liability Management of a Life Insurance Company," IIMA Working Papers WP2014-06-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Goutam Dutta & Payal Apujani & Narain Gupta, 2016. "An Introduction to the Aluminium Industry and Survey of OR Applications in an Integrated Aluminium Plant," Working Papers id:11097, eSocialSciences.
    3. Apujani, Payal & Dutta, Goutam & Gupta, Narain, 2016. "An Introduction to the Aluminum Industry and Survey of OR Applications in an Integrated Aluminum Plant," IIMA Working Papers WP2016-03-50, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Gupta, Narain & Dutta, Goutam & Fourer, Robert, 2014. "A Multi-Period Two Stage Stochastic Programming Based Decision Support System for Strategic Planning in Process Industries: A Case of an Integrated Iron and Steel Company," IIMA Working Papers WP2014-04-04, Indian Institute of Management Ahmedabad, Research and Publication Department.

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