January 18, 2024

New case study shows how Fonterra deals with production planning hurdles

Gurobi Optimization, LLC, a leader in decision intelligence technology, announced on January 9 the release of a new case study that explores how Fonterra successfully tackles production planning challenges with the company.

As a dairy co-operative owned by approximately 9,000 farmers, New Zealand's Fonterra is committed to sustainable farming practices. But being responsible for 30% of the world's dairy exports while also trying to do right by the environment comes with its own set of challenges, particularly when it comes to planning.

Since dairy is a natural product, its composition varies each day. For example, on some days, milk might have more fat than was forecast. This means Fonterra must make choices every day for how to make the best use of the components.

As a result, its production plans must be robust and flexible.

By turning to Gurobi, Fonterra is able solve these complex product mix challenges in about 60 seconds, Gurobi stated.

- Businesswire