Reel Stock Analysis for an Integrated Paper Packaging Company

TL;DR

This paper introduces a novel method for optimizing stock policies in integrated paper packaging companies, significantly reducing waste and logistics costs amid growing market demand.

Contribution

It presents a new approach to improve stock policies, outperforming existing strategies in reducing waste and costs.

Findings

9% reduction in total waste

Decreased logistics costs

Improved stock policy efficiency

Abstract

The production of corrugated paper boxes accounts for roughly one third of the world's total paper production and, as a result of both COVID-19 and the rise of e-commerce, is a growing market. We provide a fresh approach to determining near-optimal stock policies for integrated paper companies. The new approach shows that existing policies can be improved by a significant margin. In a case study we saw a reduction in total waste by 9%, with a simultaneous decrease in logistics costs.