Optimization of the Supply Chain for an Animal Feed Company in Vietnam

This thesis investigates the integrated optimization of production, inventory, and transportation planning at De Heus, an animal feed company in Vietnam. The aim of the research is to minimize total costs while increasing customer satisfaction. A mathematical model is created to optimize the current scenario. A production assignment problem is formulated, which is based on a production routing problem with flow constraints replacing the routing, and extensions from lot-sizing problems are utilized. Experiments are conducted to test a capacity extension, identify new potential locations, and explore SKU reduction. Multi-objective optimization is performed using the AUGMECON2 algorithm. The optimization results in a reduction of total costs by -1.8%, while the addition of a new location leads to a further reduction of -9.4%.