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Probability-based management of filling quantities – Development of a procedure to optimize filling quantities in pre-packages based on German regulations for pre-packaged goods

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  • Lütke Entrup, Matthias
  • Tiedge-Arnold, Edwin
  • Perret, Jens K.

Abstract

In a competitive environment characterised by tight margins and the increasing cost of raw materials, many food producers are aiming to identify additional cost reduction measures. To that respect, the filling quantity of pre-packaged goods is of major interest, as a reduction of this quantity will directly improve the cost of a product. However, the placing on the market of pre-packages is amendable to the provisions of the pre-packaging regulation. This creates conflicting priorities for the manufacturers: meet these requirements, but avoid unnecessary costs of material. This study offers producers of pre-packaged goods a procedure to evaluate the relative and financial risk attributed to an optimization of filling quantities; where it takes into particular consideration the legislative framework in Germany. A case study included, exemplifies the use of this procedure and reports on the possible financial savings.

Suggested Citation

  • Lütke Entrup, Matthias & Tiedge-Arnold, Edwin & Perret, Jens K., 2019. "Probability-based management of filling quantities – Development of a procedure to optimize filling quantities in pre-packages based on German regulations for pre-packaged goods," ISM Research Journal, International School of Management (ISM), Dortmund, vol. 6(1), pages 1-18.
    • Handle: RePEc:zbw:ismrjl:324705
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    File URL: https://www.econstor.eu/bitstream/10419/324705/1/RJ-6-2019-001.pdf
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    3. Darwish, M.A. & Abdulmalek, F. & Alkhedher, M., 2013. "Optimal selection of process mean for a stochastic inventory model," European Journal of Operational Research, Elsevier, vol. 226(3), pages 481-490.
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