Company: The Dow Chemical Co.
Headquarters: Midland, MI
Size of Company: 1,000 or more employees; more than $1B in revenue
Industry: Chemicals
Primary Product Line: Using chemistry, innovation, and sustainability to provide fresh water, food, pharmaceuticals, paints, packaging, and personal care products
Name of Project: Discrete Event System Simulation for Feedstocks Inventory Management at the Dow Chemical Company
Project Objective: To provide the Hydrocarbons & Energy business with a simulation tool to optimize the inventories of four feedstocks; measure system variables and model their effect on system performance; use model to generate minimum/optimum inventories for future planning
Technologies Employed: iThink Simulation Software Package from iSee Systems
Accomplishments/ROI: Reduced feedstocks inventory targets; reduced working capital requirements by $30 million in 2009, saving roughly $4 million; expect $24 million in net present value for next 10 years with current inventory reduction plans