The Using of Modelling Tools for Distribution Planning Improvement in a Steel Producing Company

Master’s thesis title: «The Using of Modelling Tools for Distribution Planning Improvement in a Steel Producing Company». Student: Rozhkov Stanislav Igorevich, MLG172, Faculty of Business and Management, School of Logistics, National Research University Higher School of Economics (HSE). Academic advisor: Zakhodiakin Gleb Viktorovich, Senior Lecturer, Department of Information Systems and Technologies in Logistics Key words: planning, distribution, modelling, optimization, simulation, processes reorganization, strategic profit model. The aim of the work is to improve the process of distribution planning with the help of modelling tools in order to reduce logistic costs in distribution and optimize scheduling procedure. The object of research is «NLMK», one of the world’s largest steel manufacturers. During the analysis of company's distribution planning process, following issues were revealed: low automatization and formalization of the process, the fact that distribution plan mostly depends on production department decisions instead of logistics. All of the above causes increased inventory levels in the distribution network. This work contains the description of a hybrid optimization-simulation model, which is based on author’s original development algorithm. The model’s purpose is to form distribution plans for steel products. The work also contains recommendation for planning process reorganization. The estimated financial result of suggested solutions is 0,57% increase in return on equity. Master’s thesis contents: 142 p., 42 illustrations, 26 tables, 42 references.