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Profit Maximization and Vehicle Fleet Planning for a Harbor Logistics Company

  • Natalia B. Shamray
  • Nina A. KochetovaEmail author
Conference paper
Part of the Communications in Computer and Information Science book series (CCIS, volume 871)

Abstract

We present a new optimization model to maximize the total operating profit of a harbor logistics company on a finite time horizon. Some local providers supply the company with a scrap-metal materials of different qualities. The materials are reprocessed into the high-quality product and exported to abroad by different types of ships. The company has to cover the purchase cost for the materials, the transportation cost to deliver the materials, the reprocessing and storage cost in a warehouse, shipping cost, and payment for international declarations. To find the best strategy for the company we present a mixed integer nonlinear model. We linearize the objective function and aggregate the set of providers in order to apply CPLEX software efficiently. We conduct computational experiments on real test instances and discuss how to use the model for planning fleet of vehicles, a capacity of the warehouse, and price strategy for the company.

Keywords

Supply chain Heterogeneous fleet Vehicle Reprocessing 

Notes

Acknowledgements

The research in Sects. 1, 2 and 3 was supported by RFBR grant 18-07-00599. The research in Sects. 4 and 5 was supported by the program of fundamental scientific researches of the SB RAS I.5.1., project 0314-2016-0014.

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Institute for Automation and Control SciencesVladivostokRussia
  2. 2.Sobolev Institute of MathematicsNovosibirskRussia

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