Designing an optimized logistic network: in the case of fuel and lubricant distribution

Hamame Woldegiorgis, BA

Master's thesis

Abstract:

This thesis presents a general model in mixed integers linear programming that integrates the proposed design to develop optimization for solving distribution logistics networks. The study targeted logistic service as truck distribution in the area of Gulf coast Texas, Trucks are used by fuel and lubricant distribution firms to serve their consumers. The challenge is to create a set of routes that minimizes the amount of kilometers traveled and vehicles used, while meeting client demand and reducing transportation cost at the same time. Two warehouses as a local distributor, ten customers and one refinery has been included. Kilometer‘s traveled by vehicles is decrease by 18.4%, and 30% of transportation cost has decrease as well. Freight forward is one of the big issues in logistics services, in this study cost of freight forwarders has been forecasted. Forecasting allows a logistics service provider to reduce operational and management costs while maintaining a high level of service. NN is chosen as a time series forecasting method because of its feasibility. The design model reports an efficient solution which provides sufficient information for the administration.

Keywords

Mixed Integer Linear Programming (MILP), Cost Optimization, Logistics network design, Transportation, Inventory, Warehouse, Supply Chain, Distribution Centers

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2022

Thesis defence

• Supervisor: Ing. Vít Malinovský, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Systems Engineering and Informatics / Informatics