Optimizing Middle Mile Logistics: Cutting Costs and Enhancing Efficiency

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Summary:
The sponsor company faces challenges in optimizing middle-mile transportation costs and inventory replenishment strategies due to inefficiencies in their current transportation network, suboptimal replenishment frequencies, and high Net Working Capital (NWC). To address these issues, we plan to employ a Mixed Integer Linear Programming (MILP) model for route optimization, combined with replenishment frequency scenario analysis. We aim to deliver a cost-effective middle-mile transportation network model with reduced NWC and optimal replenishment frequencies, adaptable to the company’s expanding operations.

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