Swiss Chemical Company

Creating custom statistical algorithm to define optimal “logistic bases” for formulas in order to minimize the amount of pouring and reduce costs

Challenge

• Ingredients need to be mixed at certain ratios to create flavours. Some ingredients are pre-mixed into what is called “logistic bases” to reduce the number of pours
• Choice of logistic bases by human expert is becoming harder
• Goal to find optimal logistic bases through an algorithm to increase pouring efficiency

Solution

• Created custom statistical algorithm that incorporates information about the creation process and historical production data
• Solution was however not implemented because deemed too risk to change the whole production process

Business impact

• Theoretically, the new logistic bases created through our algorithm would reduce the number of pours by 10%
• Would lead to a cost reduction after break-even with initial production process change investment