Solving a multi - echelon supply chain logistics design for WIHA pacific

Abstract

The report presents the problem of transportation cost optimization from the perspective of a German hand tools manufacturer. The objective of this thesis is to minimize the total transportation cost by doing research on distances, tariff costs, and new possible routes. In the thesis's context, the Mixed Integer Linear Programming is used to solve the cost optimization problem for Wiha. CPLEX software is applied. The model and testing data bases on the company case. The implementation details and the result of numerical experiment are presented and discussed. The article is scoped in transportation of outbound logistics of the company only. Keywords: Cost optimization, MILP.