# Material Flow Optimization as a Tool for Improving Logistics Processes in the Company
## 4 Research Background
### Material Flows in the Company  
Material Flow  
Based on the order, the supplier delivers the required quantity of raw materials (RM) and packaging materials (PM). These materials are subsequently stored according to their specific requirements. The RM is stored in refrigerated and frozen pre-production warehouses, while bulk materials are kept in silos. The PM is stored in two separate warehouses, as follows:  
* The primary packaging warehouse, which contains the direct packaging of pouches (bags);
* The secondary packaging warehouse, which stores materials for the packing facility, including cartons, dividers, and protective corners. Figure 3 illustrates the actual material flow within the manufacturing company in Veseli nad Luznicki. Based on the production plan and recipes, raw materials (RM) are released to section 1, where they undergo grinding and mixing with various components (additives, vitamins,  
Figure 3: Material flow in the company. Figure 2: Basic scheme of material flow. flour, vegetables, pasta, etc. ), forming the mixture. The mixture is then transported through a steam tunnel, where it is pre-cooked, before being transferred to the production lines, where it is filled into pouches, resulting in semi-finished goods (SF). The SF are placed in vegetable crates, with 160 pieces per crate and palletized in logistics at 28 crates per pallet. They are then transported to a warehouse located 2 km away, where they are stored for three days. After this period, the SF are loaded for return transport to the factory premises, where they are stored for one additional day before being packed at the packaging center on the fourth day according to customer requirements. These four days represent the maturation period, during which potential production issues become evident. Defective pouches begin to emit an odor or inflate starting from the second day after cooking. This process allows for the sorting of defective SF from the properly produced batches. The packaging center operates with the following five packaging lines: two dedicated to the 12-pack format, one for the 24/48-pack format, and two for the flow-pack format (6/4\(\times\) pouches in a bag). Based on customer requirements, the pouches are packed into cartons and palletized. Once wrapped in stretch film, the finished pallet is labeled with a pallet tag and recorded in the finished goods system, creating finished goods (FG). The FG warehouse is equipped with gravity flow racks with a maximum capacity of 420 pallet positions, which covers approximately 38 h of production. This flow-through FG warehouse sorts goods according to the final distribution warehouse, after which they are loaded onto trucks and transported to Distribution Warehouse 1 in Tabor or Distribution Warehouse 2 in Ceske Budejovice. On average, nine truckloads of FG are dispatched daily. The distribution warehouses are in two locations. The first warehouse in Tabor is an internal warehouse, serving retail customers and brands managed by the manufacturing company. Here, goods are consolidated and dispatched according to customer orders. The Tabor warehouse has a capacity of 15,000 pallet positions and includes a co-packing center for the entire manufacturing group, where products are custom-mixed based on customer specifications. The second warehouse in Ceske Budejovice is an external warehouse operated by a third-party logistics provider. This warehouse handles FG designated for sister companies in Poland, Slovakia, Hungary, and the Netherlands, categorized as Intercompany FG. According to intercompany agreements, these goods must be shipped within 14 days of the production date, either to the sister company warehouses or directly to customers. Both distribution warehouses can cooperate and transfer goods between each other as needed. Like any production facility, the company generates defective products, waste, and residual materials. Given that these products are of animal origin, all waste is sent to rendering companies or incineration facilities.