The development of a system of storage facilities for spent fuel rods from commercial nuclear reactors requires solution of a model which simultaneously sites the storage facilities, assigns reactors to those facilities and chooses routes for the shipment of the spent fuel. The problem is multiobjective in its transportation component because shipment is made under two criteria: minimum transportation burden and minimum perceived risk. We blend methods of shortest paths, a zero-one mathematical program for siting, and the weighting method of multiobjective programming to show how to derive optimal solutions to this problem. Applications of the methodology demonstrate how transportation burden and risk influence location decisions and the dual role of siting/routing models in transportation policy analysis. The model is a prototype for the shipment and storage of any hazardous waste whose characteristics make the process of shipment itself an activity with risk.
By 1995, annual distribution costs for BASF North America's packaged goods were nearly $100 million. The firm explored trade-offs between customer service and operating costs in a redesign effort using linear-programming-based models. The project team adapted formulations to the extensive available data and used a series of formulations to cope with the scale of the project. A flexible modeling tool aided the team in implementing these formulations. The resulting revised distribution system reduced costs and improved customer service, and the modified distribution network took next-day deliveries from 77 percent to 90 percent. Although the team expected reduction in annual costs of 10 percent, subsequent customer service initiatives reduced the potential savings. In studies following the initial distribution changes the team estimated annual costs savings at six percent, but also identified a one-time ninepercent improvement in cash flow from inventory reductions. BASF also applied the models to operations in Scandinavia, Europe, and the Asia-Pacific area.
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