Spreadsheet optimization of flow for WIP goods at a yarn and tire cord manufacturer:

We developed a spreadsheet optimization model to find the optimal material handling policy at a leading yarn and tire cord manufacturer’s facility. The focus of the study is to optimize the movement of looms of yarn and tire cord between two major manufacturing steps. The considered flow network within the manufacturing facility is a miniature two-stage supply chain, including the middle layer of depots. Movement of material takes place through forklift trucks and cranes, which impose electricity, labor, maintenance, and depreciation costs. After introducing the company, the facility, and the project goals, we present the underlying linear programming (LP) model and our spreadsheet implementation. The results of our model suggest an annual saving of approximately $22,000 for the facility.