An applied analytics approach for facility location optimization in logistics with actionable insights for logistics managers
Date
2021
Authors
Rohani, V.A.
Guerreiro, F.
Pinho, T.
Editors
Costa, T.
Teixeira, I.
Teixeira, I.
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Book chapter
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Source details - Title: Handbook of research on reinventing economies and organizations following a global health crisis, 2021 / Costa, T., Teixeira, I. (ed./s), Ch.8, pp.124-138
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Abstract
The structure of logistic distribution networks is one of the most strategic topics in industrial facility management. This study aims to optimize the logistics structure of the LPR company in Portugal by utilizing the applied analytics methods. In doing so, both locations of facilities and structure of the logistics networks were considered as the target of the optimization process. After analyzing the 12-month historical data of the studied company with more than 8,000 customers and drop points, the optimized logistics structure and warehouse locations were determined that could deduct the logistics costs by 22%. To this end, a linear optimization algorithm was developed to identify the optimum logistic structure among more than 20 million possible network configurations. The proposed solution is applicable in the other industries with logistics operations, helping the managers to make data-driven decisions.
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Copyright 2021 by IGI Global