Material Requirement Planning in Omfed,

Bhubaneswar

Group No. 5, Section D

Adarsh Shenoy UM18194

Mayurakshi Mukherjee UM18220
Prateek Rout UM18229
Raunak Singh Chance UM18233
Siddharth Palai UM18237
Trishna Satpathy UM18258
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• The Orissa State Cooperative Milk Producers’ Federation Limited (OMFED) is an apex level
Dairy Cooperative Society registered in 1962.

• OMFED’s main activities include promoting, production, procurement, processing and

marketing of milk & milk products for economic development of the rural farming
community in Orissa.

• The main products include milk, curd, paneer, chhenapoda, ghee, butter, butter milk and
milk powder.

• There are 13 Dairy plants all over Odisha and the one in Bhubaneswar is the biggest with a
capacity of 2,50,000 liters.

• Purchase commodities from the members of other sources without affecting the interest of
the members, process, manufacture, distribute and sell them same, arrange to manufacture
/ purchase
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• We visited the OMFED factory in Chandrasekharpur, Bhubaneswar as can be seen from

the pictures above. It has the largest capacity as mentioned earlier.

• In the factory, we were briefed about the processes and we observed how the processes
in the production of milk and its products were carried out.

• We also had a talk with the marketing department about the demand of milk and its
products, the procurement of raw materials and other queries.
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Process flowchart for milk

production
Procurement
of raw milk

Quality
Testing
Storage in
RMT

Pasteurization

Storage in
silos

Packaging

Cold Storage

Market
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Process flowchart for curd

production
Storage in silos

Heating at 90 ℃

Cooling at 25 ℃

Inoculation with starter culture

Packaging

Fermentation at 38 ℃

Storage in Insulator at 40℃

Cold Storage

Market
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• The daily demand is determined based on the amount paid by the vendor on the
previous day.

• There has never been an instance when the demand for the OMFED products have
exceeded the supply.

• Whatever excess milk is produced over and above the demand is converted into
milk powder.

• The milk powder is sold separately as a product and also used for production of milk
in the future.

• There is seasonality in demand wherein it is high during the summer.

• There is a spike in demand during festivals like Shivratri and Durga Pooja.
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December 2018

Products Demand quantity Units

Sweet Curd 16800 KG

Plain Curd 13400 KG

Lassi 55500 Packets

Paneer 22800 KG

Chhena Poda 3120 KG

Rabdi 7800 KG

Khoa 770 KG

Peda 790 KG
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Paneer (Milk) 01 02 03 04 05 06 07 08 09 10 11 12 13 14

GR   1650 1785 1695 1824 1643 1913              

SR                            

On Hand                            

NR   1650 1785 1695 1824 1643 1913              

POReceipts   1650 1785 1695 1824 1643 1913              

PORelease 1650 1785 1695 1824 1643 1913                

Paneer (Citric 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Acid)
GR   450 462 449 469 451 474              

SR                            
On Hand                            

NR   450 462 449 469 451 474              

POReceipts   450 462 449 469 451 474              

PORelease   450 462 449 469 451 474              

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Plain curd 01 02 03 04 05 06 07 08 09 10 11 12 13 14

GR   786 786 786 786 786 786              

SR   0 0 0 0 0 0              

On Hand   0 0 0 0 0 0              

NR   786 786 786 786 786 786              

POReceipts   786 786 786 786 786 786              

PORelease 786 786 786 786 786 786                

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Milk 01 02 03 04 05 06 07 08 09 10 11 12 13 14

GR 9760 9760 9760 9760 9760 9760 9760              

SR 0 0 0 0 0 0 0              

On Hand 0 0 0 0 0 0 0              

NR 9760 9760 9760 9760 9760 9760 9760              

POReceipts 9760 9760 9760 9760 9760 9760 9760              

PORelease 9760 9760 9760 9760 9760 9760 9760              

Citric Acid 01m 02 03 04 05 06 07 08 09 10 11 12 13 14

GR           12026 12026 12026 12026 12026 12026 12026    
0 0 0 0 0 0 0
SR           0 0 0 0 0 0 0    
On Hand           0 60130 48104 36078 24052 12026 0    
0 0 0 0 0
NR           12026 12026 12026 12026 12026 12026 12026    
0 0 0 0 0 0 0
POReceipt           72156           72156    
s 0 0
POReleas 72156           72156              
e 0 0
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• Through this project we understood how the milk industry works and
how production takes place.
• The demand for the products is highly fluctuating and seasonal. The
demand peaks during the summers and goes through a trough during
the winters.
• But the organization operates on the rules that they have to purchase
all the milk the farmers supply even though the market demand is much
less than that.
• Hence this makes production a very challenging job as the goods are
highly perishable.
• Due to lack of data we could not make an accurate analysis of all the
products that are produced by Omfed. Also, since
• Supply of milk changes everyday this entire process becomes a complex
material requirement planning.
Thank You