LINDO Applications On Tap

 

LINDO has a long history of use in the international beer industry. The very first commercial version of LINDO was licensed to the Mexican brewer of such labels as Carta Blanca, Tecate and Dos Equis. Twenty years later the largest beer maker in Turkey is using LINDO to locate new malt plants.

 

The first batch of Turkish beer is believed to have been brewed back about 2000 BC. Four thousand years later, Efe Beverage Group has a 75% share of the Turkish beer market. With a annual per-capita rate of about 10 liters, Turkey's beer consumption lags many countries of the world (the Czech republic ranks first guzzling a staggering 156 liters and US is fifth downing about 84 liters). However, Efes knows the segment of the population that consumes the most beer, 18 to 45 year olds, is forecasted to grow substantially in the next two decades, and they want to be prepared to satisfy this burgeoning group of beer drinkers.

To accomplish this, Efes commissioned a study to evaluate sites for new malt plants. LINDO and a mixed integer model were used to determine where to locate the new plants as well as the amounts of barley and malt transported among different locations each year. The objective was to minimize the long-term discounted cost, which included the cost of opening new plants and transportation costs of barley and malt.

"Prior to this study, locating a new malt plant at a port town and investing in a private harbor (or at least private loading and unloading equipment) was seen as a viable alternative," remarked Serdar Bölükbasi, Marketing Director, Efes Beverage Group. This would allow the company to avoid certain costs associated with loading and unloading the barley and malt. "The economic analysis conducted in the study clearly demonstrated that this alternative was far too expensive relative to its benefits."

Bölükbasi continued, "Throughout the study, many solutions and their corresponding costs were generated. This was an important learning process for us." To learn more on this application, pour yourself a cold one, pick up the March-April 1999 issue of INTERFACES, and turn to "Efes Beverage Group Makes Location and Distribution Decisions for Its Malt Plants."

For more information on LINDO, please see the product pages. You can also download a demo version from our download page or order a full blown version directly from our order page.

 

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