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A Real Case on Making Strategic Logistics Decisions with Production and Inventory Optimization Models

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Advances in Optimization and Decision Science for Society, Services and Enterprises

Part of the book series: AIRO Springer Series ((AIROSS,volume 3))

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Abstract

A real case is described of the use of industrial optimization models (linear/integer programming) for logistics decisions in the medium term (annual planning) and strategic decisions. The application of these models to optimize annual operations and make strategic decisions on the sizing of storage capacity is studied. The optimization models are built with the author’s software, which is capable of proposing and solving problems of the required size: thousands of equations, tens of thousands of variables and hundreds of thousands of non-zero coefficients. The models demonstrate the enormous power of this methodology and its potential savings in production/transport costs, which were as much as 20% in the case in this work.

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Acknowledgment

I would like to thank to two anonymous referees for their wise advices that have improved the paper.

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Authors and Affiliations

  1. Department of Economics, University of Alcala, Madrid, Spain

    E. Parra

Authors
  1. E. Parra
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Correspondence to E. Parra .

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Editors and Affiliations

  1. Department of Informatics, Bioengineering, Robotics, and Systems Engineering (DIBRIS), University of Genoa, Genoa, Italy

    Massimo Paolucci

  2. Department of Economics and Business Studies (DIEC), University of Genoa, Genoa, Italy

    Anna Sciomachen

  3. Department of Economics and Business Studies (DIEC), University of Genoa, Genoa, Italy

    Pierpaolo Uberti

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Parra, E. (2019). A Real Case on Making Strategic Logistics Decisions with Production and Inventory Optimization Models. In: Paolucci, M., Sciomachen, A., Uberti, P. (eds) Advances in Optimization and Decision Science for Society, Services and Enterprises. AIRO Springer Series, vol 3. Springer, Cham. https://doi.org/10.1007/978-3-030-34960-8_35

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