Mathematical Model and a Case Study for Multi-Commodity Transportation Problem
Niluka Rodrigo,
Lashika Rjapaksha
Issue:
Volume 4, Issue 1, February 2018
Pages:
1-7
Received:
31 October 2017
Accepted:
18 December 2017
Published:
15 January 2018
Abstract: The problem of locating distribution centers is one of the most important issues in design of supply chain. The design of the distribution system is an important issue for almost every company. Wide range of problems arising in practical applications can be formulated as Mixed-integer nonlinear Models. Multi-commodity distribution system design is a generalization of a facility location problem where we have several commodities, and shipment from a plant to customer occurs through a distribution center. This report presents a real life distribution problem. The problem is to determine which distribution centers to use so that all customer demands are satisfied, production capacities are not exceeded, and the total distribution cost that is the fixed cost of operating the distribution center and the transportation cost is minimized. A computer program (Software R) is developed to obtain the optimal solution.
Abstract: The problem of locating distribution centers is one of the most important issues in design of supply chain. The design of the distribution system is an important issue for almost every company. Wide range of problems arising in practical applications can be formulated as Mixed-integer nonlinear Models. Multi-commodity distribution system design is ...
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