2001
DOI: 10.1287/inte.31.3.55.9635
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Optimization Models for Restructuring BASF North America's Distribution System

Abstract: 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 i… Show more

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Cited by 19 publications
(5 citation statements)
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“…We conducted a review of the operations research (OR) literature to identify existing studies that use transportation cost-optimization network models to estimate traffic flows. Karabakal et al (2000), Leachman (2008), Rahimi et al (2008), and Sery et al (2001) use cost-optimization network models incorporating multiple transportation modes to determine the optimal inland transportation paths for goods. Our method combines approaches used in these studies to create a network model, which we then tailor to model each possible expansion option at Davisville.…”
Section: Methodology and Resultsmentioning
confidence: 99%
“…We conducted a review of the operations research (OR) literature to identify existing studies that use transportation cost-optimization network models to estimate traffic flows. Karabakal et al (2000), Leachman (2008), Rahimi et al (2008), and Sery et al (2001) use cost-optimization network models incorporating multiple transportation modes to determine the optimal inland transportation paths for goods. Our method combines approaches used in these studies to create a network model, which we then tailor to model each possible expansion option at Davisville.…”
Section: Methodology and Resultsmentioning
confidence: 99%
“…This setting is suited to LSPs that use small trucks for collection and delivery tours and larger ones between TSPs. If only shipments between TSPs or hubs are considered, an optimizer software can be used to modify the distribution network design (Sery et al, 2001). LSPs use several types of transport strategies and post different rates depending on the transportation segment and the quantity of shipments (Lapierre et al, 2004).…”
Section: Distribution Network Designmentioning
confidence: 99%
“…Brown et al (2001) discussed Kellogg Company's large-scale multiperiod LP for production and distribution of two of its product lines. Sery et al (2001) used LP models to find the optimal number and location of distribution centers and the corresponding material flows needed to meet anticipated demands at the lowest overall cost for BASF North America's packaged goods group. Chan et al (2002) proposed two algorithms to find a zero-inventory-ordering policy in a single-warehouse multiretailer scenario in which the warehouse serves as a cross-dock facility.…”
Section: Previous Supply-chain Optimizationmentioning
confidence: 99%