A raw material shortage model of the Finnish chemical industry

At the beginning of 1975 the Federation of the Finnish Chemical Industry and the University of Helsinki, Department of Computer Science, set up a project to develop a mathematical model to be used as a planning tool during accidental raw material shortages in the Finnish chemical industry. The model has been designed, programmed, and tested. The main part of the system consists of a linear programming model, which is used to answer “what-if” questions.This paper describes the model, the programs and the main problems encountered in the design process. The present version of the system can solve problems involving at most 100 firms, 400 products, 400 types of raw materials and 200 technical or policy constraints.