Integrating Budgeting Models into Scheduling and Planning Models for the Chemical Batch Industry

Abstract

This paper addresses scheduling and planning with financial management in the batch chemical process industries. A cash flow and budgeting model is coupled with an advanced scheduling and planning procedure for a specific multipurpose batch specialty chemical plant. To motivate the use of an integrated model, a sequential scheme is first solved. Hence, the scheduling and planning problem of the batch specialty chemical plant is optimized in order to fulfill the due date policy. Then, a deterministic cash management model is optimized to maximize the enterprise earnings, using the cash flows of the scheduling−planning model as parameters. As a result, owing to the fulfillment of customer requirements, the solvency of the firm changes, and hence, the funding policy is affected. The results of the sequential approach are then compared with the integrated model highlighting the advantage of the latter option. Here, production scheduling−planning and cash management are optimized in unison with a common object...