Supply Chain Optimization and Planning in Heracles General Cement Company

Published Online:https://doi.org/10.1287/inte.2013.0689

Heracles General Cement Company, a member of Lafarge Group, is the largest producer of cement in Greece. In 2005, the corporation decided to improve the efficiency of its supply chain. To help manage this process, we developed a platform for supply chain optimization and planning (SCOP) using mathematical programming. Today, Heracles management uses SCOP to guide its supply chain operations, determine optimal operational response policies to fluctuations in demand and production, perform mid- and long-term planning, evaluate what-if scenarios, address network optimization problems, and identify the best tactics for implementing strategic decisions. SCOP has enabled Heracles to improve its global performance in supply chain management and achieve substantial savings at the operational and strategic levels.

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