Optimization of Food Industry Production Using the Monte Carlo Simulation Method: A Case Study of a Meat Processing Plant

Abstract

The problem evaluated in this study is related to the optimization of a budget of an industrial enterprise using simulation methods of the production process. Our goal is to offer a universal and straightforward methodology for simulating a production budget at any level of complexity by presenting it in a specific form. The calculation of such production schemes, in most enterprises, is currently done manually, which significantly limits the possibilities for optimization. This article proposes a model based on the Monte Carlo method to automate the budgeting process. The application of this model is described using an example of a typical meat processing enterprise. Approbation of the model showed its high applicability and the ability to transform the process of making management decisions and the potential to increase the profits of the enterprise, which is unattainable using other methods. As a result of the study, we present a methodology for modeling industrial production that can significantly speed up the formation and optimization of an enterprise’s budget. In our demonstration case, the profit increased by over 30 percentage points.