Company's Logistic Costs Optimization Project

Despite of logistics drastic importance growth recently, little has been said about how to measure performance of this kind of activity. The relevance of the research topic is determined by the need to reduce logistics cost and, consequently, optimization of production in unstable economic environment. This paper presents optimization model for logistic systems and performance evaluation tools, which were implemented in organizations. The objective of this research is applying these kinds of optimization models according to the current situation in «Vavilov State Optical Institute» company. The present project limitations are three ways of optimization of the transportation process in the company: modeling of the optimal route of delivery of finished goods, revision of the performance of logistic department and the right choice of logistic service provider. The methods used in the final qualifying work: analytical and research methods. The models are developed based on the supply chain management theory in order to achieve the lowest cost. Also, delivery mode selection is constructed by using optimization concept to determine the best alternative. Furthermore, freight forwarder selection process is created by extending the use of the delivery mode selection model. As a result, a few suggestions to improve the logistic system were formed.