Strategic Planning and Simulation, Margin Optimisation

Margin in the chemicals industry can be maximised through the best production technology and using volatile raw materials prices and exchange rates. When general conditions for production fluctuate, e.g. due to a strong fall in demand, volatile raw material or energy prices or exchange rates, production strategies and target functions must adapt equally rapidly. If there is overcapacity, priorities may change from completing the order to the best of one’s ability to maximising margins or minimal sales prices which just cover costs. Planning information (order situation, available capacity etc.) as well as commercial information (prices, exchange rates, transport costs) are part of the margin optimisation. This data is provided by the fine planning model. Alternative production processes or adjustment of the product portfolio can be proposed as a result of the review.

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