Session

Computer Science and Information Systems

Description

Many manufacturing companies produce their products in few locations and transport them to the different shops or demand points. In this paper work we will use the power of IP - Solver and Microsoft Solver Foundation in order to resolve logistical route optimization problem to reduce transportation cost of the fruit juice factory or to find the least expensive way to produce and transport products to the customers and meet customer demand. Fruit juice company produces juice in three different factories: F1, F2 and F3. Each week, the fruit juice factory must transport juice to the five different demand points: D1, D2, D3, D4 and D5. Speaking mathematical terms, our goal is to find minimal cost logistical route while passing all predetermined points on the way. This kind of problem is called:”A transportation problem” and can be set up as a integer linear programming model with the below specifications: Minimizing total production and shipping cost, Constraints - The amount shipped from each production point cannot exceed plant capacity. Every demand point must receive its required demand. Transportation trucks have the limit of loading quantity. Also, each shipping amount must be nonnegative At the end we will compare IP - Solver and Microsoft Solver Foundation results and least expensive way with the utmost expensive way.

Keywords:

Cost, Integer Programming, mathematical model, IP - Solver and Microsoft Solver Foundation

Session Chair

Zhilbert Tafa

Session Co-Chair

Arjeta Vokshi

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-31-8

First Page

23

Last Page

31

Location

Durres, Albania

Start Date

7-11-2014 4:30 PM

End Date

7-11-2014 4:45 PM

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Nov 7th, 4:30 PM Nov 7th, 4:45 PM

Logistical Route Optimization to Reduce Transportation Cost

Durres, Albania

Many manufacturing companies produce their products in few locations and transport them to the different shops or demand points. In this paper work we will use the power of IP - Solver and Microsoft Solver Foundation in order to resolve logistical route optimization problem to reduce transportation cost of the fruit juice factory or to find the least expensive way to produce and transport products to the customers and meet customer demand. Fruit juice company produces juice in three different factories: F1, F2 and F3. Each week, the fruit juice factory must transport juice to the five different demand points: D1, D2, D3, D4 and D5. Speaking mathematical terms, our goal is to find minimal cost logistical route while passing all predetermined points on the way. This kind of problem is called:”A transportation problem” and can be set up as a integer linear programming model with the below specifications: Minimizing total production and shipping cost, Constraints - The amount shipped from each production point cannot exceed plant capacity. Every demand point must receive its required demand. Transportation trucks have the limit of loading quantity. Also, each shipping amount must be nonnegative At the end we will compare IP - Solver and Microsoft Solver Foundation results and least expensive way with the utmost expensive way.