Specialty Packaging Corporation (SPC) is a manufacturer of plastic containers. The supply chain is as shown in the figure in the frame to the right.
Containers are manufactured at thermoforming presses according to customer demand. SPC plans to hold no finished product inventory. The thermoforming presses use plastic sheet (either black or clear) as raw material to produce the containers. The sheet is manufactured by extruders in SPC or a subcontractor. If extra sheet is available in some quarter of the year, the sheet is stored in a warehouse (either public or private). SPC wants a plan that will best supply the forecast demand over the next three years.
Copyright 2001, Sunil Chopra