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Optimization of the Supply Chain Distributor Operating in the Market of Building and Household Goods

Student: Averina Ekaterina

Supervisor: Andrey Aleksandrovich Bochkarev

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Logistics and Supply Chain Management (Bachelor)

Final Grade: 10

Year of Graduation: 2018

Developing and improving optimization methods and models is an actual question for improving the efficiency of supply chains. The purpose of this work is to develop recommendations for optimizing the distribution chain by solving the transport and storage problem. In accordance with the goal the following tasks were set: to learn the basics of strategic supply chain planning; to consider models and methods for the optimal location of capacities in supply chains; to analyze the combined optimization algorithm for the warehouse network; to consider multicriteria decision-making methods of the warehouses location; to analyze the existing dislocation of warehouses and cargo flows in the supply chain of the company "ADM" and develop it’s individual statement of the transport and storage problem; to choose the location of the new warehouse in the "ADM" supply chain; to solve the transport-warehouse problem and develop recommendations for optimization of the "ADM" supply chain. The object of the research is the "ADM" supply chain. The subject – the planning methods used at the strategic and tactical level for optimizing the supply chains. Based on the results of this research, it may be concluded that the goal and objectives formulated at the beginning of the study were successfully reached. In the this paper practical implementation of mathematical programming methods for finding the solution to the problem of optimizing the location of "ADM" warehouses was presented. For the company "ADM" were selected regions in which it is the most preferable to locate new warehouses. Having solved the transport and warehousing problem formulated on the basis of the analysis of the data submitted by the management of "ADM", it can be concluded that for this company the optimal solution is the closure of four warehouses, since in this case the common logistics costs reduced by 9,58% compared to the basis variant, while the time is reduced by more than a half (51.01%).

Full text (added May 17, 2018)

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