Authors:
Genny Hsieh, Bharti Yadav
MIT Supply Chain Management Program (SCM)
36
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.
Would like to understand what transportation optimization tools you used (if any) for this analysis? I have completed various studies on both inbound and outbound networks for large global shippers looking for more consolidation (ie. milk-runs, pooling, etc) for improved asset/truck utilization and reduced costs for intra-DC transfers. Perhaps we can meet at the SCALE event to discuss this further.