(90a) Network Optimization Of Packaged Gases Supply Chains At Praxair

The Packaged Gases business accounts for 20% of Praxair's business worldwide. Here, cylinders of various sizes are filled with many different gases and distributed or sold directly to customers. This business has grown mostly from acquisitions and has evolved different customer service rules worldwide. Over the years, these rules became corrupted, the business grew significantly larger, Praxair subsidiaries merged and so on. An effort was led by Praxair to improve the efficiency of these businesses, the first step of which was to evaluate the designs of the supply chains. In this paper we present a description of the efforts and the results of optimizing the networks of two businesses. This talk will conclude with a call for more research to improve the tactical and operational aspects of increasingly larger supply chains.