A logistics analysis at Heinz

A logistics analysis at Heinz

0.00 Avg rating0 Votes
Article ID: iaor1991545
Country: United States
Volume: 20
Issue: 5
Start Page Number: 1
End Page Number: 13
Publication Date: Sep 1990
Journal: Interfaces
Authors: , , ,
Keywords: decision, transportation: rail, Transportation: Rail
Abstract:

Heinz U.S.A. and Carnegie Mellon University examined various options for shipping tomato paste from Heinz’s processing facilities on the West Coast to its Midwest factories. Seasonal variations in demand and supply for tomato paste, coupled with varying freight costs, caused the selection of appropriate means of transportation to be complex. The authors developed a decision support system (DSS) to assess the costs of using three options: specialized tank cars, Scholle bags, and a combination of both. The model demonstrated that tank cars were more economical than bags when the utilization of cars was above a critical level. The analysis gave management a powerful tool to assess alternative investment strategies and the sensitivity of operating costs and performance under various business conditions.

Reviews

Required fields are marked *. Your email address will not be published.