Sponsor:

Alcoa Corporation

Research Team:

Sunderesh Heragu, Gail W. DePuy, Gerald W Evans

Universities Involved:

University of Louisville

Start Date:

09/01/05

End Date:

06/30/06

Summary:

This project develops a linear, mixed-integer mathematical programming model to minimize cost and improve customer service levels
Alcoa Engineered Products (AEP) is interested in developing an optimal or near-optimal strategy for its manufacturing and distribution activities. AEP manufactures extruded aluminum products at several US manufacturing locations. All products are extruded and then undergo one of several operations. The plants have a subset of the following processing capabilities – mill finish, anodizing, painting, and fabrication. The make-to-stock (MTS) items are stored in depots located in or near some manufacturing plants. The MTS and Make-to-order (MTO) items are shipped to several markets. AEP would like to perform a detailed analysis of the operations at each of the manufacturing plants, distribution of products from these plants to the markets and inventory strategy analysis.