Method and system for optimizing procurement of packaging materials in a manufacturing plant

The method and optimization system address the challenges of varying packaging material requirements by grouping orders and optimizing procurement strategies, enhancing inventory management and reducing costs in manufacturing plants.

WO2026159460A1PCT designated stage Publication Date: 2026-07-30ABB (SCHWEIZ) AG
View PDF 0 Cites 0 Cited by

Patent Information

Authority / Receiving Office
WO · WO
Patent Type
Applications
Current Assignee / Owner
ABB (SCHWEIZ) AG
Filing Date
2025-01-21
Publication Date
2026-07-30

AI Technical Summary

Technical Problem

Manufacturing plants face challenges in efficiently managing the procurement of packaging materials due to varying customer specifications, increased operational inefficiencies, and inventory management issues, leading to delays and increased costs.

Method used

A method and optimization system that groups similar orders based on packaging requirements and constraints, determining optimal procurement strategies using a predefined cost function to minimize inventory costs and ensure timely delivery.

Benefits of technology

The system enables efficient procurement of packaging materials, reducing operational inefficiencies, minimizing delays, and optimizing inventory management, thereby improving customer satisfaction and reducing costs.

✦ Generated by Eureka AI based on patent content.

Smart Images

  • Figure IB2025050604_30072026_PF_FP_ABST
    Figure IB2025050604_30072026_PF_FP_ABST
Patent Text Reader

Abstract

The present disclosure relates to method and optimization system (104) for optimizing procurement of packaging materials in manufacturing plant. The method comprises receiving order information associated with plurality of orders (102) requiring procurement of one or more packaging materials. The order information indicates one or more packaging requirements for each of the plurality of orders (102). Further, the method comprises identifying one or more groups of similar orders, based on the one or more packaging requirements. Furthermore, the method comprises determining a plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on the one or more packaging requirements and one or more pre-defined constraints. Thereafter, the method comprises identifying an optimal strategy from the plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on a pre-defined cost function.
Need to check novelty before this filing date? Find Prior Art

Description

TITLE: “METHOD AND SYSTEM FOR OPTIMIZING PROCUREMENT OF PACKAGING MATERIALS IN A MANUFACTURING PLANT” TECHNICAL FIELD

[0001] The present disclosure generally relates to packaging materials used in manufacturing plants. More particularly, the present disclosure relates to optimizing procurement of packaging materials in a manufacturing plant.BACKGROUND

[0002] In manufacturing plants, finished goods are packed using packaging materials. For instance, in a paper and pulp manufacturing plant, the finished goods are packed, rolled, or wrapped using the packaging materials. The packaging materials may include, a carton box, a wrapping paper, a core pipe, labels, and the like. Various kinds of customers provide orders for the packaging materials to the manufacturing plants. Each customer order may have a different specification of the packaging materials in terms of both dimension and quality. Hence, the quantity of the packaging materials required for each order varies depending on the dimensions and the quality of the finished goods.

[0003] Generally, the planning of procurement of the packaging materials takes place a few days or months before the actual production of final products. During the planning, the packaging material requirements are determined for individual orders within a date range. In the current global scenario, industries are not only targeting local markets but also targeting export markets. Hence, there is an increased variation in the requirements of the packaging materials. The packaging material requirements may deviate from an initial plan also because of variations in the quantity of the packaging materials.

[0004] Further, it is challenging to determine an actual consumption of the packaging materials and manage inventory of the packaging materials due to the increased number of orders, as well as customized sizes requested by the customers. This leads to operational inefficiencies in procurement of the packaging materials. Also, the final quantity for a particular order may vary even in the last stage of production. For example, the final quantity varies due to a change in production route selection, a change in composition of orders, a change in business practices, and the like.

[0005] The information disclosed in this background of the disclosure section is only for enhancement of understanding of the general background of the invention and should not be taken as an acknowledgement or any form of suggestion that this information forms the prior art already known to a person skilled in the art.SUMMARY

[0006] In an embodiment, the present disclosure discloses a method of optimizing procurement of packaging materials in a manufacturing plant. The method comprises receiving order information associated with a plurality of orders requiring procurement of one or more packaging materials. The order information indicates one or more packaging requirements for each of the plurality of orders. Further, the method comprises identifying one or more groups of similar orders from the plurality of orders, based on the one or more packaging requirements. Furthermore, the method comprises determining a plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on the one or more packaging requirements and one or more pre-defined constraints. Thereafter, the method comprises identifying an optimal strategy from the plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on a predefined cost function.

[0007] In an embodiment, the present disclosure discloses an optimization system for optimizing procurement of packaging materials in a manufacturing plant. The optimization system comprises a processor and a memory. The processor is configured to receive order information associated with a plurality of orders requiring procurement of one or more packaging materials. The order information indicates one or more packaging requirements for each of the plurality of orders. Further, the processor is configured to identify one or more groups of similar orders from the plurality of orders, based on the one or more packaging requirements. Furthermore, the processor is configured to determine a plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on the one or more packaging requirements and one or more pre-defined constraints. Thereafter, the processor is configured to identify an optimal strategy from the plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on a predefined cost function.

[0008] The foregoing summary is illustrative only and is not intended to be in any way limiting. In addition to the illustrative aspects, embodiments, and features described above, further aspects, embodiments, and features will become apparent by reference to the drawings and the following detailed description.BRIEF DESCRIPTION OF THE ACCOMPANYING DRAWINGS

[0009] The novel features and characteristics of the disclosure are set forth in the appended claims. The disclosure itself, however, as well as a preferred mode of use, further objectives, and advantages thereof, will best be understood by reference to the following detailed description of an illustrative embodiment when read in conjunction with the accompanying figures. One or more embodiments are now described, by way of example only, with reference to the accompanying figures wherein like reference numerals represent like elements and in which:

[0010] Figure 1 illustrates an exemplary environment for optimizing procurement of packaging materials in a manufacturing plant, in accordance with some embodiments of the present disclosure;

[0011] Figure 2 illustrates a detailed block diagram of an optimization system, in accordance with some embodiments of the present disclosure;

[0012] Figure 3 shows an exemplary flow chart illustrating method steps for optimizing procurement of the packaging materials in the manufacturing plant, in accordance with some embodiments of the present disclosure; and

[0013] Figure 4 shows a block diagram of a general-purpose computing system for optimizing procurement of the packaging materials in the manufacturing plant, in accordance with embodiments of the present disclosure.

[0014] It should be appreciated by those skilled in the art that any block diagram herein represents conceptual views of illustrative systems embodying the principles of the present subject matter. Similarly, it will be appreciated that any flow charts, flow diagrams, state transition diagrams, pseudo code, and the like represent various processes which may be substantially represented in computer readable medium and executed by a computer or processor, whether or not such computer or processor is explicitly shown.DETAILED DESCRIPTION

[0015] In the present document, the word "exemplary" is used herein to mean "serving as an example, instance, or illustration." Any embodiment or implementation of the present subject matter described herein as "exemplary" is not necessarily to be construed as preferred or advantageous over other embodiments.

[0016] While the disclosure is susceptible to various modifications and alternative forms, specific embodiment thereof has been shown by way of example in the drawings and will be described in detail below. It should be understood, however that it is not intended to limit the disclosure to the particular forms disclosed, but on the contrary, the disclosure is to cover all modifications, equivalents, and alternatives falling within the scope of the disclosure.

[0017] The terms “comprises”, “comprising”, or any other variations thereof, are intended to cover a non-exclusive inclusion, such that a setup, device or method that comprises a list of components or steps does not include only those components or steps but may include other components or steps not expressly listed or inherent to such setup or device or method. In other words, one or more elements in a system or apparatus proceeded by “comprises... a” does not, without more constraints, preclude the existence of other elements or additional elements in the system or apparatus.

[0018] In manufacturing plants, finished goods are packed using packaging materials. Each customer order has a different specification of the packaging materials in terms of both dimension and quality (such as a grade, a grammage or Grams per Square Meter (GSM), a burst factor, a strength, etc.) with minimal tolerances. For instance, each customer may specify different materials such as Low Density Polyethylene (LDPE), High-Density Polyethylene (HDPE), Film Coating, and the like, based on respective requirements. Hence, the quantity of the packaging materials required for each order varies depending on the dimension, the quality of the finished goods, and selection of equipment for manufacturing the packaging materials. There is an increased variation in the packaging material requirements. Due to variations in the quantity of the packaging materials, the packaging material requirements deviate from an initial plan which causes operational inefficiencies.

[0019] A reduction in trim loss in the manufacturing plants has resulted in more customized sizes of products, specific packaging needs, and small quantity orders. Due to this, theinventory of different sizes of packaging materials has increased. Hence, it is challenging to determine an actual consumption of the packaging materials and manage inventory of the packaging materials due to the increased number of orders as well as customized sizes requested by customers.

[0020] Also, the final quantity for a particular order varies even in the last stage of production. For example, the final quantity varies due to a change in production route selection (for example, different sheeter or rewinder selection), a change in a composition of orders (for example, due to rush orders or order cancellation), a change in business practices (for example, a change in standard sizes, an amount of future order inclusion, an available stock), and the like.

[0021] The cost per ton of the packaging materials decreases with the increase in the quantity of the packing materials. However, the existing solutions fail to perform such an analysis. Also, there is no mechanism to track an inventory of the packaging materials. In existing solutions, the planning of the packaging material is only based on the order quantity and dimension. This results in an increase in packaging costs, an increase in inventory levels, a shortage of the packaging materials, and eventually a delay in delivery of products due to unavailability of the packaging materials.

[0022] The existing solutions fail to estimate different types of the packaging materials and the quantity of the packaging materials. This results in excessive inventory of packaging material that is not required or lack of inventory of required packaging material, which in turn causes delays in delivering orders and lowers customer satisfaction. Also, improper inventory management causes a blockage of funds for materials that are not required, and a shortfall in packaging materials for the processing of the orders.

[0023] The present disclosure provides a method and an optimization system for optimizing procurement of packaging materials in a manufacturing plant. In the present disclosure, information of orders that require procurement of the packaging materials along with corresponding packaging requirements are received. The packaging requirements, for example, include quality and dimension tolerances. The orders are grouped based on similarity in the packaging requirements. The optimization system of the present disclosure determines multiple strategies for procurement and utilization of the packaging materials based on the packaging requirements and pre-defined constraints. The pre-defined constraints, for example, includeinventory restrictions, equipment constraints, and the like. The optimization system of the present disclosure identifies an optimal strategy, among the multiple strategies, based on a predefined cost function indicating a trade-off between the packaging requirements and the predefined constraints.

[0024] The present disclosure ensures that the packaging requirements are complied, while also ensuring other constraints / restrictions in the manufacturing plant are complied with. Hence, the present disclosure enables optimizing the procurement of the packaging materials by considering various factors such as the packaging requirements, the pre-defined constraints, and also a trade-off between the packaging requirements and the pre-defined constraints. The optimization in the procurement of the packaging materials further minimizes or eliminates a delay in delivery of the packaging materials. Also, optimized and timely selection of packaging material for each order is ensured. The present disclosure also discloses grouping of similar orders. As the similar orders are grouped and further procurement process is based on the grouping, the packaging materials of similar type may be procured at large quantities. Hence, the present disclosure enables optimization of cost of procurement of the packaging materials.

[0025] The present disclosure integrates procurement of the packaging materials by considering different orders across mills (or different production lines) with trim and available stocks of the packaging materials. Also, the present disclosure closely monitors the actual requirement of the packaging materials and determines a deviation in packaging requirement from an initial plan. Hence, the present disclosure enables efficient analysis of the packaging material requirements. This reduces cost of inventory for the packaging materials. Also, spot market procurement is minimized. Further, there is an effective utilization and reuse of the packaging materials, such as recycled core pipes.

[0026] The present disclosure enables effective monitoring of the usage of packaging materials for forecasted order demands. The present disclosure further enables production debottlenecking for the packaging material inventory based on the analysis. Further, precise estimation of the packaging materials and a fudge factor is achieved based on real-time monitoring and feedback. The present disclosure facilitates intermittent production of different products at the same facility. Also, the present disclosure enables improvement in On Time In Full (OTIF) (also referred to as On Quantity of delivery) and customer satisfaction.

[0027] Figure 1 illustrates an exemplary environment 100 for optimizing procurement of packaging materials in a manufacturing plant, in accordance with embodiments of the present disclosure. The environment 100 comprises an optimization system 104 and a user 106. The optimization system 104 is configured to optimize procurement of packaging materials in a manufacturing plant. The procurement of the packaging materials plays a pivotal role in operation of the manufacturing plant. For instance, paper finishing is one of the main sections of paper production. In this section, paper is converted into a customer-deliverable product. The procurement process involves the steps and activities an organization takes to source and acquire the packaging materials and supplies needed for its products. These processes can be complex and challenging for the organizations due to various factors. Efficient packaging procurement is essential for cost control, quality assurance, sustainability, risk management, and overall operational efficiency. It not only impacts the bottom line but also plays a critical role in its ability to meet customer expectations and regulatory requirements. Also, the procurement process needs to evolve with changes in business practices, industry trends, and customer preferences. The optimization system 104 of the present disclosure is configured to identify an optimal strategy for procurement of the packaging materials in the manufacturing plant.

[0028] In an embodiment, the manufacturing plant may include any plant with requirement of procurement of the packaging materials (also referred as finishing materials). For example, the manufacturing plant may include, without limiting to, a pulp and paper manufacturing plant, a chemical plant, a textile plant, a food processing plant, and the like. In an embodiment, the manufacturing plant may include, but not limited to, a continuous process plant, a semi-continuous process plant, and a batch manufacturing process plant. The present disclosure is explained by considering the pulp and paper manufacturing plant as an example for explanation purposes. However, this should not be considered in a limiting sense. A person skilled in the art will appreciate that the similar methodology and configurations of the optimization system is applicable to other manufacturing plants with requirement of procurement of the packaging materials.

[0029] There may be multiple orders requiring procurement of the packaging materials received from various customers in the manufacturing plant. The multiple orders are shown as order 102i, 1022, .... 102N (collectively referred to as the plurality of orders 102) in Figure 1.The plurality of orders 102 may include, for example, sheet orders, roll orders, bale orders, pulp orders, and the like.

[0030] In an embodiment, the optimization system 104 may be implemented in a variety of computing systems, such as a laptop computer, a desktop computer, a Personal Computer (PC), a notebook, a smartphone, a tablet, e-book readers, a server, a network server, a cloud-based server, and the like. In an embodiment, the optimization system 104 may be implemented in the manufacturing plant, an edge device, and / or a cloud server. In the present disclosure, the optimization system 104 is configured to receive order information associated with the plurality of orders 102 requiring procurement of one or more packaging materials. The plurality of orders 102 may be received directly from a user 106 or a database (not shown in Figure 1) comprising a log of received orders for a specific period of time. The order information indicates one or more packaging requirements for each of the plurality of orders 102. In an example, the one or more packaging requirements may include, without limiting to, a quality tolerance of the packaging material. The optimization system 104 identifies one or more groups of similar orders based on the one or more packaging requirements. In the present description, the user 106 may include reference to an operator or a technical person or an authorized representative in the manufacturing plant. The customer may refer to a person providing the plurality of orders 102 for the one or more packaging materials.

[0031] The optimization system 104 determines a plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on the one or more packaging requirements and one or more pre-defined constraints. The one or more predefined constraints, for example, may include an inventory restriction and a delivery date associated with the plurality of orders 102. Then, the optimization system 104 identifies an optimal strategy from the plurality of strategies based on a pre-defined cost function which indicates a trade-off between the packaging requirements and the one or more pre-defined constraints. In an embodiment, the optimization system 104 may transmit or display the optimal strategy for procurement of the one or more packaging materials corresponding to the one or more groups to the user 106. For instance, the optimal strategy may be displayed on a user interface (not illustrated in Figures) accessible to the user 106. The user 106 may perform review or perform further analysis of procurement of the one or more packaging materials, upon receiving the optimal strategy.

[0032] Figure 2 illustrates a detailed block diagram 200 of the optimization system 104 for optimizing procurement of the packaging materials in the manufacturing plant, in accordance with some embodiments of the present disclosure. The optimization system 104 may include Central Processing Units 206 (also referred as “CPUs” or “a processor 206”), Input / Output (I / O) interface 202, and a memory 204. In some embodiments, the memory 204 may be communicatively coupled to the processor 206. The memory 204 stores instructions executable by the processor 206. The processor 206 may comprise at least one data processor for executing program components for executing user or system-generated requests. The memory 204 may be communicatively coupled to the processor 206. The memory 204 stores instructions, executable by the processor 206, which, on execution, may cause the processor 206 to optimize procurement of the packaging materials in the manufacturing plant. In an embodiment, the memory 204 may include computation data 208 and one or more modules 210 . The one or more modules 210 may be configured to perform the steps of the present disclosure using the computation data 208, for optimizing procurement of the packaging materials in the manufacturing plant. In an embodiment, each of the one or more modules 210 may be a hardware unit which may be outside the memory 204 and coupled with the optimization system 104. As used herein, the term modules 210 refers to an Application Specific Integrated Circuit (ASIC), an electronic circuit, a Field-Programmable Gate Arrays (FPGA), Programmable System-on-Chip (PSoC), a combinational logic circuit, and / or other suitable components that provide described functionality. The one or more modules 210, when configured with the described functionality defined in the present disclosure, will result in a novel hardware. Further, the I / O interface 202 is coupled with the processor 206 through which an input signal or / and an output signal is communicated.

[0033] In an embodiment, the optimization system 104 may be coupled to a machine / equipment (not illustrated in Figures) in the manufacturing plant. For instance, the optimization system 104 may be coupled to a sheeter machine, a roll machine, and the like. In an example, one or more typical / operating parameters and / or run-time parameters of the machine / equipment may be communicated to the optimization system 104, to determine the plurality of strategies for procurement of the one or more packaging materials.

[0034] In one implementation, the modules 210 may include, for example, an input module 222, a grouping module 224, a strategy determination module 226, a strategy identification module 228, and auxiliary modules 230. It will be appreciated that such aforementioned modules 210may be represented as a single module or a combination of different modules. In one implementation, the computation data 208 may include, for example, input data 212, grouping data 214, strategy determination data 216, strategy identification data 218, and auxiliary data 220.

[0035] In an embodiment, the input module 222 may be configured to receive order information associated with a plurality of orders 102 requiring procurement of one or more packaging materials. Various customers may provide the plurality of orders 102 in the manufacturing plant that requires procurement of the one or more packaging materials. In an example, consider the manufacturing plant may be a pulp and paper industry. In such a case, the plurality of orders 102 may include roll orders, sheet orders, carton orders, and the like. The one or more packaging materials for the roll orders may include, for example, core pipe, core plug, wrapper, straps, stretch films, labels, etc. The one or more packaging materials for the sheet orders may include, for example, core pipe, ream tag, sheeter tag, labels, and the like. The one or more packaging materials for the carton orders may include, for example, carton boxes, labels, and the like.

[0036] The order information indicates one or more packaging requirements for each of the plurality of orders 102. The packaging requirements are specifications of the one or more packaging materials as required by the customers. The one or more packaging requirements may comprise, but not limited to, a grade, a quantity tolerance, a quality tolerance, and a dimensional tolerance of the one or more packaging materials. The packaging requirements may include, for example, diameter of the core pipe, a number of reels ordered for the core plug, and the like, for the roll orders. The packaging requirements may include, for example, a GSM of the wrapper, a number of wrapping layers, a tag length of the sheeter tag, and the like, for the sheet orders. The packaging requirements may include, for example, a number of pallets, a ream height, and the like, for the sheet orders.

[0037] In an embodiment, the order information associated with the plurality of orders 102 may be received in real-time from a customer. In an example, the customer may provide select a specification code from multiple pre-defined specification codes for a particular type of order. The specification code may define the one or more packaging requirements of the one or more packaging materials. A person skilled in the art will appreciate that the one or more packaging requirements may be received from the customer in other formats. The order information may further include a quantity of the one or more packaging materials.

[0038] In another embodiment, the order information associated with the plurality of orders 102 may be received from a database associated with the optimization system 104. In an example, the database may comprise a log of the plurality of orders 102 from various customers and the corresponding one or more packaging requirements. In an exemplary embodiment, the order information may be associated with the plurality of orders 102 across multiple mills or manufacturing plants. The optimization system 104 may be implemented for example, in a cloud server. In such a case, the input module 222 may receive the order information from each mill or manufacturing plant.

[0039] In an embodiment, the order information of the plurality of orders 102 may be classified to be associated with the mill / manufacturing plant, supplier, spot market, and the like. The order information associated with the manufacturing plant may include different sizes of packaging materials, dimension tolerances, quality tolerances, inventory carrying cost at the manufacturing plant, a date of requirement, a delivery penalty, a standard size flag, and the like. The order information associated with the supplier may include different sizes of packaging material, quality tolerances, set up cost, freight cost, a delivery date, and the like. The order information associated with the spot market may include, sizes of packaging materials, a quantity available, a cost of packaging materials, and the like. The order information associated with the plurality of orders 102 may be stored as the input data 212 in the memory 204.

[0040] In an embodiment, the grouping module 224 may be configured to receive the input data 212 from the input module 222. Further, the grouping module 224 may be configured to identify one or more groups of similar orders from the plurality of orders 102, based on the one or more packaging requirements. The grouping module 224 may identify the one or more groups of similar orders to determine a quantity requirement of each type of the one or more packaging materials. Herein, the grouping module 224 may perform grouping of similar orders that fall within a date range or a period (for example, three months) across machines for a particular grade of product. The date range for which procurement needs to be performed and a data range for future orders may be provided by the user 106.

[0041] The grouping module 224 may form a production run for each grade based on a normal cycle time of a production run. A trim may be run for each production run. The grouping module 224 may be configured to group orders that require similar packaging materials in terms of a quality tolerance and a dimensional tolerance. Further, the grouping module 224 may determine the quantity for each group based on the trimmed quantity. Data related to the one or moregroups of the similar orders and the determined quantity for each group may be stored as the grouping data 214 in the memory 204.

[0042] In an embodiment, the strategy determination module 226 may be configured to receive the grouping data 214 from the grouping module 224. Further, the strategy determination module 226 may be configured to determine a plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups. Each of the plurality of strategies may indicate at least one of, a requirement of one or more types of packaging materials, a quantity of each type of the packaging materials, a size of the one or more packaging materials, a delivery date, a cost of the packaging materials, and vendor for the packaging materials, and the like, for the plurality of orders 102.

[0043] In an embodiment, the strategy determination module 226 may determine the plurality of strategies, based on the one or more packaging requirements and the one or more pre-defined constraints. The one or more pre-defined constraints may include at least one of, but not limited to, one or more inventory restrictions, a delivery date of the plurality of orders 102, one or more financial restrictions, one or more equipment constraints, reuse of core pipes based on availability, and a tolerance level associated with a standard packaging material size. The present disclosure considers the one or more packaging requirements which includes specifications of the one or more packaging materials that are required by the customers.

[0044] Herein, the strategy determination module 226 determines the plurality of strategies that satisfy the one or more packaging requirements, while also ensuring that each of the plurality of strategies consider the pre-defined constraints. For instance, each of the plurality of strategies needs to meet each dimension requirement of the one or more packaging requirements. Similarly, each of the plurality of strategies needs to meet each dimension and a quantity requirement. Also, a quality of the one or more packaging materials needs to be within specified quality tolerances. Hence, the present disclosure devises multiple solutions that enable meeting the one or more packaging requirements. Each solution or strategy may be devised to achieve an optimized procurement of the one or more packaging materials.

[0045] Further, the strategy determination module 226 may determine the plurality of strategies, based on the one or more pre-defined constraints. In an embodiment, the one or more predefined constraints may include a delivery date of the plurality of orders 102. The strategy determination module 226 ensures that each of the plurality of strategies does not violate thedelivery date. Hence, the present disclosure ensures that customer requirements are met timely, effectively, efficiently, smoothly, and satisfactorily. In an embodiment, the one or more predefined constraints may include one or more inventory restrictions at the manufacturing plant. In an example, consider that each strategy determines ordering of a specific quantity of the one or more packaging materials. However, the one or more inventory restrictions (for example, in terms of space) at the mill / manufacturing plant needs to be considered. Further, the determination module 226 may consider reuse of core pipes based on availability. For instance, the core pipes may be processed and converted back as raw materials in the manufacturing plant.

[0046] In an embodiment, the one or more pre-defined constraints may include one or more financial restrictions. Each of the plurality of strategies must meet the spot market restrictions, such as cost and quantity available. In an embodiment, the one or more pre-defined constraints may include a tolerance level, or a limit associated with a standard packaging material size. In an exemplary embodiment, the one or more pre-defined constraints may include a limit on a future order inclusion. In an embodiment, the one or more pre-defined constraints may include one or more equipment constraints. The one or more equipment constraints may include, for example, a maximum sheet width, a speed, a voltage of a sheeter machine. The one or more equipment constraints may include, for example, a motor capacity and a production capacity of a roll machine. In an example, consider that a specific quantity of production of the one or more packaging materials is planned to meet the quantity tolerances. However, the one or more equipment restrictions at the manufacturing plant needs to be considered. Accordingly, the strategy determination module 226 may determine the plurality of strategies based on the one or more packaging requirements along with the one or more pre-defined constraints, to optimize the procurement of the one or more packaging materials.

[0047] In an embodiment, the strategy determination module 226 may receive inventory details of the manufacturing plant from the user 106. The strategy determination module 226 may compensate a required quantity by excess available quantity of the one or more packaging materials, in case any packaging material is available in the inventory. Further, the strategy determination module 226 may also receive information on any previous order that is cancelled, to re-procure the one or more packaging materials. The plurality of strategies may be stored as the strategy determination data 216 in the memory 204.

[0048] In an embodiment, the strategy identification module 228 may be configured to receive the strategy identification data 218 from the strategy determination module 226. Further, the strategy identification module 228 may be configured to identify an optimal strategy from the plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on a pre-defined cost function. The pre-defined cost function may include a function indicating a trade-off between the one or more packaging requirements and the one or more pre-defined constraints.

[0049] In an embodiment, the strategy identification module 228 may identify the optimal strategy from the plurality of strategies by minimizing the pre-defined cost function. A strategy for procurement of the one or more packaging materials needs to be identified in such a way that the one or more packaging requirements of the customers are met, while also considering the one or more pre-defined constraints. Accordingly, the strategy identification module 228 may identify the optimal strategy from the plurality of strategies by minimizing the pre-defined cost function.

[0050] Herein, the strategy identification module 228 may be configured to map each of the plurality of strategies with the one or more packaging requirements and the one or more predefined constraints. The strategy identification module 228 may associate a value to each of the plurality of strategies by determining a distance between each strategy and the one or more packaging requirements and the one or more pre-defined constraints. The strategy identification module 228 may identify an optimal strategy among the plurality of strategies by minimizing the cost function, i.e., a strategy with a minimal value.

[0051] In an embodiment, the plurality of strategies may be determined considering various trade-offs between the one or more packaging requirements and the one or more pre-defined constraints. A strategy with minimal trade-off according to the value may be identified as the optimal strategy. In an example, the trade-off may be between a quantity tolerance and a carrying cost of the one or more packaging materials. The higher quantity order imparts an increase in the carrying cost of material. In another example, the trade-off may be between a dimension tolerance and the cost. The clubbing of nearly the most sizes of the one or more packaging materials impacts the cost of lower-sized items. It is due to lower-sized items being procured in higher sizes. It is necessary to evaluate the benefits due to the dimension flexibility against the loss due to the procurement of larger items.

[0052] In an example, the trade-off may be between a quality tolerance and the cost. The clubbing of nearly all quality tolerances impacts the cost of lower-quality specification items. It is due to lower quality parameters that items are procured with higher quality parameters. It is necessary to evaluate the benefits due to the quality tolerances against the loss due to the procurement of higher-quality parameter items. In another example, the trade-off may be between a delivery date of an order versus the spot market. In the paper industry, the spot market refers to immediate trading of paper products. If the order is delivered after the delivery date, it may incur a cost as a penalty. Instead, the one or more packaging materials may be procured from the normal market instead of the spot market. It is necessary to evaluate the benefits of ordering the one or more packaging materials from the spot market against a penalty from the customer. Further, a packaging material cost needs to be considered. The packaging material cost may be determined as per equation 1:Cost of packaging material on required date =Cost of Packaging Material at procurement date + Inventory Cost for Future Order + (Delivery Date- Actual Required Date) * Inventory Carrying Cost + Sum of Orders (Delivery Date Penalty Cost) . (1)

[0053] In an embodiment, the optimal strategy may indicate at least one of, a requirement of one or more types of packaging materials, a quantity of each type of the packaging materials, a size of the one or more packaging materials, a delivery date, a cost of the packaging materials, and a vendor for the packaging materials, for the plurality of orders 102. The optimal strategy may be stored as the strategy identification data 218 in the memory 204.

[0054] In an embodiment, the strategy identification module 228 may be further configured to identify a deviation in packaging requirements of at least one order of the plurality of orders 102, when the optimal strategy is applied during a retrim process. The actual packaging requirements of the at least one order may be determined based on the deviation. The strategy identification module 228 may identify one or more future orders with similar packaging requirements as the at least one order, within a pre-defined date range (for example, seven days). The strategy identification module 228 may determine a strategy for procurement of one or more packaging materials for the one or more future orders, based on the actual packaging requirements of the at least one order. Hence, the present disclosure enables procurement of the one or more packaging materials for the future orders by analyzing the deviations in current orders in the manufacturing plant.

[0055] The auxiliary data 220 may store data, including temporary data and temporary files, generated by the one or more modules 210 for performing various functions of the optimization system 104. The one or more modules 210 may also include the auxiliary modules 230 to perform various miscellaneous functionalities of the optimization system 104. The auxiliary data 220 may be stored in the memory 204. It will be appreciated that the one or more modules 210 may be represented as a single module or a combination of different modules.

[0056] Figure 3 shows an exemplary flow chart illustrating method steps for identifying patterns in the process data of the industrial system, in accordance with some embodiments of the present disclosure. As illustrated in Figure 3, the method 300 may comprise one or more steps. The method 300 may be described in the general context of computer executable instructions. Generally, computer executable instructions can include routines, programs, objects, components, data structures, procedures, modules, and functions, which perform particular functions or implement particular abstract data types.

[0057] The order in which the method 300 is described is not intended to be construed as a limitation, and any number of the described method blocks can be combined in any order to implement the method. Additionally, individual blocks may be deleted from the methods without departing from the scope of the subject matter described herein. Furthermore, the method can be implemented in any suitable hardware, software, firmware, or combination thereof.

[0058] At step 302, the optimization system 104 may receive order information associated with the plurality of orders 102 requiring procurement of one or more packaging materials. The order information indicates one or more packaging requirements for each of the plurality of orders 102. The packaging requirements are specifications of the one or more packaging materials as required by the customers. The one or more packaging requirements may comprise, but not limited to, a grade, a quantity tolerance, a quality tolerance, and a dimensional tolerance of the one or more packaging materials. The packaging requirements may include, for example, diameter of the core pipe, a number of reels ordered for the core plug, and the like, for the roll orders. The packaging requirements may include, for example, a GSM of the wrapper, a number of wrapping layers, a tag length of the sheeter tag, and the like, for the sheet orders. The packaging requirements may include, for example, a number of pallets, a ream height, and the like, for the sheet orders.

[0059] At step 304, the optimization system 104 may identify one or more groups of similar orders from the plurality of orders 102, based on the one or more packaging requirements. The optimization system 104 may identify the one or more groups of similar orders to determine a quantity requirement of each type of the one or more packaging materials. Herein, the optimization system 104 may groups similar orders that fall within a date range or a period (for example, three months) across machines for a particular grade of product. The date range for which the procurement needs to be performed and a data range for future orders may be provided by the user 106. The optimization system 104 may form a production run for each grade based on a normal cycle time of a production run. A trim may be run for each production run. The optimization system 104 may be configured to group orders that require similar packaging materials in terms of a quality tolerance and a dimensional tolerance. Further, the optimization system 104 may determine the quantity for each group based on the trimmed quantity.

[0060] At step 306, the optimization system 104 may determine a plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups. Each of the plurality of strategies may indicate at least one of, a requirement of one or more types of packaging materials, a quantity of each type of the packaging materials, a size of the one or more packaging materials, a delivery date, a cost of the packaging materials, and vendor for the packaging materials, and the like, for the plurality of orders 102. In an embodiment, the optimization system 104 may determine the plurality of strategies, based on the one or more packaging requirements and the one or more pre-defined constraints. The one or more predefined constraints may include at least one of, but not limited to, one or more inventory restrictions, a delivery date of the plurality of orders 102, one or more financial restrictions, one or more equipment constraints, and a tolerance level associated with a standard packaging material size.

[0061] At step 308, the optimization system 104 may identify an optimal strategy from the plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on a pre-defined cost function. The pre-defined cost function may include a function indicating a trade-off between the one or more packaging requirements and the one or more pre-defined constraints. In an embodiment, the optimization system 104 may identify the optimal strategy from the plurality of strategies by minimizing the pre-defined cost function. A strategy for procurement of the one or more packaging materials needs to beidentified in such a way that the one or more packaging requirements of the customers are met, while also considering the one or more pre-defined constraints. Accordingly, the optimization system 104 may identify the optimal strategy from the plurality of strategies by minimizing the pre-defined cost function.COMPUTER SYSTEM

[0062] Figure 4 illustrates a block diagram of an exemplary computer system 400 for implementing embodiments consistent with the present disclosure. In an embodiment, the computer system 400 may be the optimization system 104. Thus, the computer system 400 may be used to optimize procurement of the packaging materials in the manufacturing plant.

[0063] The computer system 400 may communicate with one or more input / output (I / O) devices, using an I / O interface 402. For example, an input device 420 may be an antenna, keyboard, mousejoystick, (infrared) remote control, camera, card reader, fax machine, dongle, biometric reader, microphone, touch screen, touchpad, trackball, stylus, scanner, storage device, transceiver, video device / source, etc. An output device 422 may be a printer, fax machine, video display (e.g., cathode ray tube (CRT), liquid crystal display (LCD), lightemitting diode (LED), plasma, Plasma display panel (PDP), Organic light-emitting diode display (OLED) or the like), audio speaker, etc.

[0064] The computer system 400 may comprise a Central Processing Unit 404 (also referred as “CPU” or “processor”). The processor 404 may comprise at least one data processor. The processor 404 may include specialized processing units such as integrated system (bus) controllers, memory management control units, floating point units, graphics processing units, digital signal processing units, etc.

[0065] The processor 404 may be disposed in communication with one or more input / output (EO) devices (not shown) via EO interface 402. The I / O interface 402 may employ communication protocols / methods such as, without limitation, audio, analog, digital, monoaural, RCA, stereo, IEEE (Institute of Electrical and Electronics Engineers) -1394, serial bus, universal serial bus (USB), infrared, PS / 2, BNC, coaxial, component, composite, digital visual interface (DVI), high-definition multimedia interface (HDMI), Radio Frequency (RF) antennas, S-Video, VGA, IEEE 802. n / b / g / n / x, Bluetooth, cellular (e.g., code-division multipleaccess (CDMA), high-speed packet access (HSPA+), global system for mobile communications (GSM), long-term evolution (LTE), WiMax, or the like), etc.

[0066] The processor 404 may be disposed in communication with the communication network 418 via a network interface 406. The network interface 406 may communicate with the communication network 418. The network interface 406 may employ connection protocols including, without limitation, direct connect, Ethernet (e.g., twisted pair 10 / 100 / 1000 Base T), transmission control protocol / internet protocol (TCP / IP), token ring, IEEE 802.11a / b / g / n / x, etc. The communication network 418 may include, without limitation, a direct interconnection, local area network (LAN), wide area network (WAN), wireless network (e.g., using Wireless Application Protocol), the Internet, etc. The network interface 406 may employ connection protocols include, but not limited to, direct connect, Ethernet (e.g., twisted pair 10 / 100 / 1000 Base T), transmission control protocol / internet protocol (TCP / IP), token ring, IEEE 802.11a / b / g / n / x, etc.

[0067] The communication network 418 includes, but is not limited to, a direct interconnection, an e-commerce network, a peer to peer (P2P) network, local area network (LAN), wide area network (WAN), wireless network (e.g., using Wireless Application Protocol), the Internet, WiFi, and such. The first network and the second network may either be a dedicated network or a shared network, which represents an association of the different types of networks that use a variety of protocols, for example, Hypertext Transfer Protocol (HTTP), Transmission Control Protocol / internet Protocol (TCP / IP), Wireless Application Protocol (WAP), etc., to communicate with each other. Further, the first network and the second network may include a variety of network devices, including routers, bridges, servers, computing devices, storage devices, etc.

[0068] In some embodiments, the processor 404 may be disposed in communication with a memory 410 (e.g., RAM, ROM, etc. not shown in Figure 4) via a storage interface 408. The storage interface 408 may connect to the memory 410 including, without limitation, memory drives, removable disc drives, etc., employing connection protocols such as serial advanced technology attachment (SATA), Integrated Drive Electronics (IDE), IEEE- 1394, Universal Serial Bus (USB), fiber channel, Small Computer Systems Interface (SCSI), etc. The memory drives may further include a drum, magnetic disc drive, magneto-optical drive, optical drive, Redundant Array of Independent Discs (RAID), solid-state memory devices, solid-state drives, etc.

[0069] The memory 410 may store a collection of program or database components, including, without limitation, user interface 412, an operating system 414, web browser 416 etc. In some embodiments, computer system 400 may store user / application data, such as, the data, variables, records, etc., as described in this disclosure. Such databases may be implemented as fault-tolerant, relational, scalable, secure databases such as Oracle® or Sybase®.

[0070] The operating system 414 may facilitate resource management and operation of the computer system 400. Examples of operating systems include, without limitation, APPLE MACINTOSH® OS X, UNIX®, UNIX-like system distributions (E.G., BERKELEY SOFTWARE DISTRIBUTION™ (BSD), FREEBSD™, NETBSD™, OPENBSD™, etc.), LINUX DISTRIBUTIONS™ (E.G., RED HAT™, UBUNTU™, KUBUNTU™, etc.), IBM™ OS / 2, MICROSOFT™ WINDOWS™ (XP™, VISTA™ / 7 / 8, 10 etc.), APPLE™ IOS™, GOOGLE® ANDROID™, BLACKBERRY® OS, or the like.

[0071] In some embodiments, the computer system 400 may implement the web browser 416 stored program component. The web browser 416 may be a hypertext viewing application, for example MICROSOFT® INTERNET EXPLORER™, GOOGLE® CHROME™, MOZILLA® FIREFOX™, APPLE® SAFARI™, etc. Secure web browsing may be provided using Secure Hypertext Transport Protocol (HTTPS), Secure Sockets Layer (SSL), Transport Layer Security (TLS), etc. Web browsers 416 may utilize facilities such as AJAX™, DHTML™, ADOBE® FLASH™, JAVASCRIPT™, JAVA™, Application Programming Interfaces (APIs), etc. In some embodiments, the computer system 400 may implement a mail server (not shown in Figure) stored program component. The mail server may be an Internet mail server such as Microsoft Exchange, or the like. The mail server may utilize facilities such as ASP™, ACTIVEX™, ANSI™ C++ / C#, MICROSOFT®, .NET™, CGI SCRIPTS™, JAVA™, JAVASCRIPT™, PERL™, PHP™, PYTHON™, WEBOBJECTS™, etc. The mail server may utilize communication protocols such as Internet Message Access Protocol (IMAP), Messaging Application Programming Interface (MAPI), MICROSOFT® exchange, Post Office Protocol (POP), Simple Mail Transfer Protocol (SMTP), or the like. In some embodiments, the computer system 400 may implement a mail client stored program component. The mail client (not shown in Figure) may be a mail viewing application, such as APPLE® MAIL™, MICROSOFT® ENTOURAGE™, MICROSOFT® OUTLOOK™, MOZILLA® THUNDERBIRD™, etc.

[0072] Furthermore, one or more computer-readable storage media may be utilized in implementing embodiments consistent with the present disclosure. A computer-readable storage medium refers to any type of physical memory on which information or data readable by a processor may be stored. Thus, a computer-readable storage medium may store instructions for execution by one or more processors, including instructions for causing the processor(s) to perform steps or stages consistent with the embodiments described herein. The term “computer-readable medium” should be understood to include tangible items and exclude carrier waves and transient signals, i.e., be non-transitory. Examples include Random Access Memory (RAM), Read-Only Memory (ROM), volatile memory, non-volatile memory, hard drives, Compact Disc Read-Only Memory (CD ROMs), Digital Video Disc (DVDs), flash drives, disks, and any other known physical storage media.

[0073] The terms "an embodiment", "embodiment", "embodiments", "the embodiment", "the embodiments", "one or more embodiments", "some embodiments", and "one embodiment" mean "one or more (but not all) embodiments of the invention(s)" unless expressly specified otherwise.

[0074] The terms "including", "comprising", “having” and variations thereof mean "including but not limited to", unless expressly specified otherwise.

[0075] The enumerated listing of items does not imply that any or all of the items are mutually exclusive, unless expressly specified otherwise. The terms "a", "an" and "the" mean "one or more", unless expressly specified otherwise.

[0076] A description of an embodiment with several components in communication with each other does not imply that all such components are required. On the contrary a variety of optional components are described to illustrate the wide variety of possible embodiments of the invention.

[0077] When a single device or article is described herein, it will be readily apparent that more than one device / article (whether or not they cooperate) may be used in place of a single device / article. Similarly, where more than one device or article is described herein (whether or not they cooperate), it will be readily apparent that a single device / article may be used in place of the more than one device or article, or a different number of devices / articles may be used instead of the shown number of devices or programs. The functionality and / or the features ofa device may be alternatively embodied by one or more other devices which are not explicitly described as having such functionality / features. Thus, other embodiments of the invention need not include the device itself.

[0078] The illustrated operations of Figure 3 show certain events occurring in a certain order. In alternative embodiments, certain operations may be performed in a different order, modified, or removed. Moreover, steps may be added to the above-described logic and still conform to the described embodiments. Further, operations described herein may occur sequentially or certain operations may be processed in parallel. Yet further, operations may be performed by a single processing unit or by distributed processing units.

[0079] Finally, the language used in the specification has been principally selected for readability and instructional purposes, and it may not have been selected to delineate or circumscribe the inventive subject matter. It is therefore intended that the scope of the invention be limited not by this detailed description, but rather by any claims that issue on an application based here on. Accordingly, the disclosure of the embodiments of the invention is intended to be illustrative, but not limiting, of the scope of the invention, which is set forth in the following claims.

[0080] While various aspects and embodiments have been disclosed herein, other aspects and embodiments will be apparent to those skilled in the art. The various aspects and embodiments disclosed herein are for purposes of illustration and are not intended to be limiting, with the true scope being indicated by the following claims.Referral Numerals:

Claims

We claim:

1. A method of optimizing procurement of packaging materials in a manufacturing plant, the method comprising:receiving, by a processor (206), order information associated with a plurality of orders (102) requiring procurement of one or more packaging materials, wherein the order information indicates one or more packaging requirements for each of the plurality of orders (102);identifying, by the processor (206), one or more groups of similar orders from the plurality of orders (102), based on the one or more packaging requirements;determining, by the processor (206), a plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on the one or more packaging requirements and one or more pre-defined constraints; andidentifying, by the processor (206), an optimal strategy from the plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on a pre-defined cost function.

2. The method as claimed in claim 1, wherein the one or more packaging requirements comprise at least one of, a grade, a quantity tolerance, a quality tolerance, and a dimensional tolerance of the one or more packaging materials.

3. The method as claimed in claim 1, wherein the one or more groups of similar orders from the plurality of orders (102) are identified based on at least one of, a grade, a quality tolerance, and a dimensional tolerance associated with the one or more packaging materials of each of the plurality of orders (102).

4. The method as claimed in claim 1, wherein the one or more pre-defined constraints comprise at least one of, one or more inventory restrictions, a delivery date of the plurality of orders (102), one or more financial restrictions, one or more equipment constraints, reuse of core pipes based on availability, and a tolerance level associated with a standard packaging material size.

5. The method of claim 1, wherein the pre-defined cost function comprises a function indicating a trade-off between the one or more packaging requirements and the one or more pre-defined constraints.

6. The method as claimed in claim 1, wherein identifying the optimal strategy from the plurality of strategies comprises minimizing the pre-defined cost function.

7. The method as claimed in claim 1, wherein each of the plurality of strategies indicate at least one of, a requirement of one or more types of packaging materials, a quantity of each type of the packaging materials, a size of the one or more packaging materials, a delivery date, a cost of the packaging materials, and a vendor for the packaging materials, for the plurality of orders (102).

8. The method as claimed in claim 1, further comprising:identifying a deviation in packaging requirements of at least one order of the plurality of orders (102), when the optimal strategy is applied during a retrim process;determining actual packaging requirements of the at least one order based on the deviation;identifying one or more future orders with similar packaging requirements as the at least one order, within a pre-defined date range, anddetermining a strategy for procurement of one or more packaging materials for the one or more future orders, based on the actual packaging requirements of the at least one order.

9. An optimization system (104) for optimizing procurement of packaging materials in a manufacturing plant, the optimization system (104) comprises:a processor (206); anda memory (204), wherein the memory (204) stores processor-executable instructions, which, on execution, causes the processor (206) to:receive order information associated with a plurality of orders (102) requiring procurement of one or more packaging materials, wherein the order information indicates one or more packaging requirements for each of the plurality of orders (102);identify one or more groups of similar orders from the plurality of orders (102), based on the one or more packaging requirements;determine a plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on the one or more packaging requirements and one or more pre-defined constraints; andidentify an optimal strategy from the plurality of strategies for procurement of the one or more packaging materials corresponding to the one or more groups, based on a pre-defined cost function.

10. The optimization system (104) as claimed in claim 9, wherein the one or more packaging requirements comprise at least one of, a grade, a quantity tolerance, a quality tolerance, and a dimensional tolerance of the one or more packaging materials.

11. The optimization system (104) as claimed in claim 9, wherein the processor (206) identifies the one or more groups of similar orders from the plurality of orders (102) based on at least one of, a grade, a quality tolerance, and a dimensional tolerance associated with the one or more packaging materials of each of the plurality of orders (102).

12. The optimization system (104) as claimed in claim 9, wherein the one or more predefined constraints comprise at least one of, one or more inventory restrictions, a delivery date of the plurality of orders (102), one or more financial restrictions, one or more equipment constraints, reuse of core pipes based on availability, and a tolerance level associated with a standard packaging material size.

13. The optimization system (104) of claim 9, wherein the pre-defined cost function comprises a function indicating a trade-off between the one or more packaging requirements and the one or more pre-defined constraints.

14. The optimization system (104) as claimed in claim 9, wherein identifying the optimal strategy from the plurality of strategies comprises minimizing the pre-defined cost function, wherein each of the plurality of strategies indicate at least one of, a requirement of one or more types of packaging materials, a quantity of each type of the packaging materials, a size of the one or more packaging materials, a delivery date, a cost of the packaging materials, and a vendor for the packaging materials, for the plurality of orders (102).

5. The optimization system (104) as claimed in claim 9, wherein the processor (206) is further configured to:identify a deviation in packaging requirements of at least one order of the plurality of orders (102), when the optimal strategy is applied during a retrim process;determine actual packaging requirements of the at least one order based on the deviation;identify one or more future orders with similar packaging requirements as the at least one order, within a pre-defined date range, anddetermine a strategy for procurement of one or more packaging materials for the one or more future orders, based on the actual packaging requirements of the at least one order.