Hybrid two-stage planning for food industry overproduction waste minimization

Convenience food manufacture generates considerable waste due to the planning of production being undertaken based upon forecasted orders. This problem is particularly acute for products that have a very short shelf-life and are subject to considerable volatility in demand, such as ready-meals. Overproduction wastes (OPWs) typically result in finished products being disposed of through commercial waste channels, which is both costly for manufacturers and represents poor and unsustainable use of resources. This paper reports on a hybrid two-stage planning technique for the reduction of OPW by utilizing the advantages offered through both static and dynamic approaches to production scheduling. The application of this planning approach to a case study ready-meal manufacturer through the development of commercially available planning software is also described.