Increased Capex Decision with Optimization Model

Situation

The customer was planning a significant investment. However they faced difficulties due to multiple locations and types of possible investments. The customer needed a solution that would suggest capacity addition plans for the next 15 years, keeping in mind the demand situation. They also needed to build a business case for the recommendation, considering different alternates and their cost impact

Impact

The existing sub optimal decision making impacted their cost as well as service to the market. This affected their standing in the market over the years

Resolution

An optimization model was developed with multiple what if scenarios to identify and justify the investment to be made. The project considered many what-if scenarios for alternate business models to identify the risks in each business model and the associated costs

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