Nlogistics network optimization pdf merger

The ties between linear programming and combinatorial optimization. Designing distribution networks and applications to ebusiness. Inventory optimization in supply chain management using. Combined logistics network cln is one of the most established and dynamic freight forwarding networks in the world that is 18 years in operation. Making the smart logistics network a reality upss smart logistics network refers to our digitally and physically connected facilities, fleet, and information systems. In seeking a solution, many consider fullscale supply chain network optimization. Network model analysis is a powerful tool to improve overall supply chain performance. A system optimization perspective for supply chain network integration. Currently, the distribution center, that is located in arendal, employs 25 people and serves 19 different customers within 10,000m2 warehouse. This integrated problem is frequently encountered in many logistics networks. Lectures in supplychain optimization stanford university.

Drivers to optimize a distribution network merger or acquisition business growthdownsizing competitive pressure to reduce expense through nearshoring or offshoring increase efficiency by reducing logistics. Logistics network an overview sciencedirect topics. The center of gravity method is an approach that seeks to compute geographic coordinates for a potential single new facility that will minimize costs. Robert everett is a wellknown blogger and writer at uk edubirdie, in chicago. A blueprint for supply chain optimization supply chain 247. Stanford supply chain forum call it distribution or logistics or supply chain management. Before 2015 logistics network optimization was only possible for the largest, most sophisticated companies. Optimization once the data are collected, cleaned, and veri ed, the next step is to optimize the con guration of the logistics networks. Supply chain and logistics optimization is neither easy nor cheap but it is the biggest opportunity for most companies to significantly reduce their cost and improve their performance. Building a business case for a supply chain dynamic network optimization project by llamasoft editorial team january 15, 2016 supply chain optimization can enable businesses to keep up with the. In this article, darren woollard from dmg freight, offering supply. Logistics network optimization considering balanced. A systemoptimization perspective for supply chain network.

Turn your supply chain into a competitive weapon bain. This is particularly useful for linking supply and. A big part of optimization for a 3pl is network design. Network design is an important capability for 3pls third party logistics providers. Facility costs decrease as the number of facilities is reduced as shown in figure 4.

A warehouse strategy involves many important decisions such as the investment and operation costs that make up the logistics overhead. Network models 8 there are several kinds of linearprogramming models that exhibit a special structure that can be exploited in the construction of ef. Optimizing distribution networks for a logistics management. Network optimization is only valuable following a major supply chain disruption, such as a merger or significant geographic expansion. The horizontal merger case anna nagurney department of finance and operations management isenberg school of management.

Models and algorithms for optimization in logistics. Network optimization lies in the middle of the great divide that separates the two major types of optimization problems, continuous and discrete. Supply chain is the integration of procurement, logistics and operational functions to ensure the right. Supply chain network design and optimization anylogistix. Inventory optimization application aids in the enhancement of inventory control and its management across an extended supply network, which organizes the latest techniques and technologies. Every logistics firm that is struggling to boost their operations, they can incorporate these suggestions for logistics network optimization. Logistics and management information systems from penn state university and is a frequent guest lecturer on the topic of network design at several u. Designing the distribution network in a supply chain. He also holds the lead scientist role for ibms inventory optimization.

Peter cacioppi is the lead scientist for ibms network design product, logicnet plus xe. A logistics network is the physical configuration of your supply chain. Models and algorithms for optimization in logistics 3 in the third phase we assign employees to the generated daily crew tasks for all working days over the year such that the constraints concerning. Assessing your network design is a strategic approach to reducing complexity, cost and inventory, whilst maintaining service level. Taking a global logistics network composed of plant or production site ps, distribution center dc, and customer or retailer re as shown in figure 1, we try to decide the available pss and their production. Logistics network optimization is about determining the number, location and size of warehouses that are optimal for each business by. Pharmaceutical leader reimagines postmerger logistics. Yet many of the typical tactics for increasing productivity and reducing costs post merger. Understanding of logistics network optimization why and. A supply chain network optimization analysis, when executed properly, can set the stage for a companys. Logical steps to logistics optimization preparing for smart metering mass deployment. It is a global network of more than 300 independent. This article presents an effort to study the complex problem that arises when balanced allocation is integrated with vehicle routing decisions in a logistics network. Network optimization 2 companies today are continually challenged to reduce costs and improve service levels.