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Value chain management for commodities: a case …
OR SpectrumDOI ARTICLEV alue chain management for commodities : a case studyfrom the chemical industryM. Kannegiesser G nther P. van Beek M. Grunow C. Habla Springer-Verlag 2008 AbstractWe present a planning model for chemical commodities related to anindustry case . commodities are standard chemicals characterized by sales and supplyvolatility in volume and Value . Increasing and volatile prices of crude oil-dependentraw materials require coordination of sales and supply decisions by volume and valuethroughout the Value chain to ensure profitability. Contract and spot demand differen-tiation with volatile and uncertain spot prices, spot sales quantity flexibility, spot salesprice quantity functions and variable raw material consumption rates in productionare problem specifics to be considered. Existing chemical industry planning modelsare limited to production and distribution decisions to minimize costs or models focus on uncertainty in demand quantities not in prices.
Value chain management for commodities Production location 1 Procurement location 1 R1 R2 continuous multi-purpose Production Sales location 1 Sales location 9
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