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Operations research in BASF's supply chain operations
Author(s) -
Blackburn Robert,
Kallrath Josef,
Klosterhalfen Steffen T.
Publication year - 2015
Publication title -
international transactions in operational research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.032
H-Index - 52
eISSN - 1475-3995
pISSN - 0969-6016
DOI - 10.1111/itor.12118
Subject(s) - euros , supply chain , cover (algebra) , supply chain management , process (computing) , computer science , operations research , process management , engineering management , operations management , business , risk analysis (engineering) , marketing , engineering , humanities , operating system , mechanical engineering , philosophy
In this paper, we highlight the application of operations research (OR) at BASF in the area of supply chain management (SCM) by using selected examples with annual cost savings ranging between several hundred thousand and several million euros. We address special characteristics of the process industry that should be dealt with and identify future research needs. The examples cover strategic, tactical, and operational topics encountered at BASF. We share our lessons learned, based on our experience from past OR projects in SCM, about challenges as well as benefits of standard and tailor‐made OR solutions. In general, we find that the special characteristics often call for a modification or enhancement of standard OR models. Providing appropriate solutions therefore requires a joint effort of SCM, IT, and OR experts.