4.6 Article

Polarica's wild berries: an example of a required storage capacity calculation and where to locate this inventory

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EMERALD GROUP PUBLISHING LIMITED
DOI: 10.1108/13598540410544908

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food industry; inventory control; productive capacity; estimation; supply chain management

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Polarica is a company in northern Europe buying, refining and selling wild berries and other specialty foods. During the last couple of years the volume of wild berries, mostly blueberries, has increased a lot. This expansion forces Polarica to consider investments in freezing-in capacity and cold-storage capacity. A simple heuristic model was constructed, from which it was concluded that additional volumes of frozen blueberries require more storage facilities and it was also recommended that the location should be based on load-distance analysis. The way this problem is tackled and solved can be copied and hopefully it presents ideas for other similar studies.

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