Using mixed-integer programming to reduce label changes in the Coors aluminum can plant

Valley Metal Container (VMC), a joint venture between the Coors Brewing Company and American National Can, operates the world's largest single-site facility for aluminum can production. Located in Golden, Colorado, the plant manufactures over 4 billion cans per year on six production lines. Coors Brewery produces seven products, each requiring a distinct label. We developed an optimization-based decision support system with a spreadsheet user interface that helps VMC planners to determine the weekly can production schedule, aiming to meet brewery demand while minimizing the number of label changes and related costs. VMC has been using the new system since October 1998 and estimates the reduction in direct costs (scrap, labor, and inventory) at over $150,000 per year.