Cost reduction through blend optimization while maintaining defined quality criteria
The recipe-based production of blends and compounds is an overall standard procedure in a chemical industry with highly heterogeneous product portfolios and production processes. Blend optimization is thus applied to reduce costs and to optimize margins whereby several components of a formulation with given substance properties are utilized and linked with prices. An important criterion to apply blend optimization is a detailed chemical composition profiling of raw materials as well as intermediate and end products in the overall production process.
ORSOFT Manufacturing Workbench | Mixing calculation / blending optimization by using software-supported supply chain execution / production planning
Within the scope of software-supported mixture calculation and blending optimization, different qualities of available batches can be taken into account and utilized. Hence, the bill of materials assigned to the target products can be created according to the following criteria:
- Use of the sufficient quality (rather than unnecessarily higher qualities)
- Consideration of product supplies, intermediate receipts and the utilisation of "residue batches" to reduce warehouse costs
- Consideration of transportation limitations such as pipelines, tank-to-tank transfers and forklift restrictions
- Consideration of volume and recipe restrictions as well as co-products and mixing sequences