Modelling & Simulation as a Strategic Tool for Decision-Making Process: A Dairy Case Study
DOI:
https://doi.org/10.7494/dmms.2020.14.1.2785Keywords:
Modelling and Simulation, Dairy Industry, decision-making process, optimisation, GAMSAbstract
The dairy industry faces many challenges when compared to other sectors. On the supply side, due to the nature of the raw material, large inventories are not applied; during the manufacturing process, continuous production is highly sensitive to any sort of unplanned disruption; on the demand side, the market dictates the bulk powder commodity prices. In response to the growth in competition, dairy organizations’ strategy must incorporate technology into their daily processes in order to become more efficient, profitable and sustainable. To achieve desired levels of improvement, Modelling and Simulation (M&S) has been increasing in popularity in the decision-making process. Using a dairy company as a case study, this paper has highlighted the potential for M&S to be used as a powerful strategic tool for decision-making processes.
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