The FMCG industry is one of the oldest in our civilization. Packaging and processing technologies have continuously been evolving, but other supply chain practices such as optimizing recipe composition, are still managed through trial and error at best.
A Bill of Material is a fine grained composition of components needed to produce a finished product. For FMCG, it usually includes a list of ingredients and packaging materials that are required to meet certain quality attributes for a particular food item. However, raw materials frequently vary in their chemical composition and properties. To combat this, ingredients have the flexibility to be interchanged between others that share similar properties. The proportion of each ingredient is adjusted accordingly based on what substitutions were made.
Today, on-the-spot adjustment of recipes is still very manual and often causes to one of the main bottlenecks in food production. These decisions need to be automated with a design of numerical recipes to gain a higher level of agility and a better financial performance for the Supply Chain.