Production planning for chicken processing
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Production planning for chicken processing - a goal programming approach helps
to determine the purchasing and production mix Inguruwatte Premachandra and Ashok Raj asingh This article discusses a study involvnig the application of goal progra u, mi; ;g for produ ctio; t phi;;;; ing in a leading
chicken processinç plant ii, New Zealand. This plant purchases Iia' birds from growing tarais, processes them into chicken products oui! supplies these to local supermarkets.
The world wide chicken processing industry has been growing on an industrial scale for over fifty years. Large chicken processing plants in the USA process as many as 250,000 birds a day. In New
Zealand, the processing plants are much smaller and procese about 15,000 to 60,00() birds a day. Birds for
the processing plants are supplied by growing farms. Two broad varieties of chicken are being
grown in these growing farms - one for producing eggs and the other ('broiler' chicken) for meat. The growing farms supply six to eight-week-old broiler
and nibbles are produced in varying sizes from
birds of different sizes. In order to meet the demand for one type of cut-up product, for example breasts of one particular size, the processing company has to purchase a certain number of live birds of a par-
ticular size, process them, and cut them not only into breasts but also into other portions such as thighs, wings, drumsticks and nibbles. This may result in the production of excess quantitites of other cut up products such as wings for which there is less
demand. If the company tries to minimise surplus unsold wings, there could be a shortfall in supply of other cut up products like breasts. As a result of surplus portions, various inventory problems may also arise thus forcing the company to sell portions at discounted prices. In addition, the company has to respect budgetary limitations when purchasing the live birds. Furthermore, the processing company has to safeguard the interests of various internal and external departments as well.
chickens to the processing plants where the birds are dressed, portioned and packed.
For example, the sales department is mainly concerned with achieving profit targets by selling to
demand the optimal mix of premium products
The most common product produced in a process-
ing plant is whole dressed bird. The weights of whole dressed birds preferred by markets differ
(breasts, thighs) and as few as possible discounted products (drumsticks, nibbles, wings). The sales department wants to know in advance of any short-
from country to country. In New Zealand the most
popular weight of whole dressed birds sold in
falls that may occur on specific portiOflS so that they can forewarn customers and arrange for alternative
supermarkets ranges from 1 .65 kg to 2.00 kg. The other products are cut up products (portions) of the
supplies. On the other hand, when less desirable portions are in surplus, the sales department wants
whole chicken, such as breasts, thighs, wings,
to know in advance what these are, and the we
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