Distribution of Products in Warehouse Network: Synthesis of Special Optimization Procedures

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MAGAZINE №4 (75) August 2016

AUTHORS 

BRODETSKIY G.L.

DYBSKAYA V.V.

GUSEV D.A.

KULESHOVA E.S. - Planning Manager, Syngenta LTD (Moscow, Russia) 

CATEGORY Optimization and economic-mathematical modeling Inventory management 

ABSTRACT

Research of new efficient optimization decisions related to the distribution tasks of goods in the warehouse network is particularly relevant today. The purpose of this article - to help practitioners working in this field in the development of new approaches and methods for finding the best solutions in relation to problems of this type that will use existing hidden reserves of improving the efficiency of such systems. In particular, we will focus on the possibility of taking into account in the optimization of goods distribution strategies of a number of important factors, such as: 1) the ability to select the period of time for supply planning by orders of stores; 2) the ability to simulate orders from stores with the defined probability distributions for random amounts of such orders; 3) the ability to adapt to the preferences of the selection decision maker; 4) the possibility of reducing transport costs for deliveries, using solutions such as transport problems played out for random order value. The article presents such procedures, which correspond with the task of determining the best solution for the distribution of the goods in the warehouse network problem on many criteria. These procedures involve the synthesis of these optimization processes during the selected period to plan the supply of solutions. 1) Simulation modelling with random orders to stores this next period at the Monte Carlo method. 2) The use of analytic hierarchy process to compare the importance of particular criteria for decision-makers. 3) Minimization the cost of transportation and storage of goods in the form of a linear programming problem (for simulated random orders in relation to the analyzed alternatives to the possible adoption of the strategy and execution of orders). This article shows that the implementation of a set of procedures mentioned would allow formalizing the task of selecting the solution as the problem of multi-criteria optimization. After that, choose the best solutions can be carried out on the basis of traditional theory, and  taking into account the adaptation of such a choice to the decision maker's preferences. Such selection procedures will be presented in a separate article.

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