Last week I was asked by a large bakery in Lancs to optimise their pie production for profit. They make Scotch pies and are up against a superb product over the border, Meat and potato, Forfar Bridies (Scottish again) and pork pies.
They make them in several sizes and there is a demand for everything. The owner laid out the problem. When they made everything, it sold, but their profits fall off a cliff. The meat pies share a mixing machine, the pork pies another machine. There are two pie ovens and baking is carried out all night. Pastry is mixed and held as it is needed. Obviously there is a limit to how much beef, potato, flour and fats that can be held as stocks.
This was a difficult optimisation as we had to include in the constraints a number of smallish "Trophy Orders" which must be supplied at all costs. Just to complicate things, he started making Haggis for Burns Night. Taking on the Scots id difficult. Doing it without profit is impossible. We sorted it and as a bonus he will make an extra £900 a week. Now to optimise delivery!
My way saw him making an extra £900 a week in profit but it could have been more were it not for concessions he wanted to make to certain customers. (Minus of course my pies!) It's a brave Lancastrian who will take on the Scots at their own food - they are so good at it. So, for Burns Night he started to make Haggis. That could be an all out trade war.
The equations were for 40 variables and 35 constraints plus some scheduling. Next thing is to add the Forfar Bridies!! (another Scottish delicacy)
