Supply Chain Planning – Issues for Continuous Chemical Companies
Olin Thompson - October 16, 2000

Why SCP for a Continuous Chemical Company?

Why does a continuous chemical company need a supply chain planning system? Because the high fixed cost of the plant drives a management objective of 100% capacity utilization. A common approach to this utilization objective is to set prices at a low enough level to drive to 100% utilization. As utilization approaches 100%, the demand for perfection in the supply chain plan increases. This, and other operating realities introduce a number of objectives including:..