Cost Optimization In Transporting Bulk Cargo: A Case Study Of Cargill Feed And Nutrition Binh Duong

Abstract

Transportation cost is one of the important factors in the process of goods transportation due to their direct impact on business profits. In this research, we analyze the Cargill Feed and Nutrition Binh Duong factory case and find ways to optimize the cost of transporting bulk cargo from ports to factory. To optimize transportation costs by reducing storage costs during the transportation of bulk cargo by truck, a barge transportation mode has been proposed and considered. A mathematical model has been built based on Binary integer programming and written in the Python programming language and run in Google Colab to calculate the optimal transport cost between the two methods, based on that helping to evaluate the effectiveness of the proposed barge transportation mode. The results obtained from the research have shown the effectiveness of transporting bulk cargo by barge in large quantity shipments as well as partially reducing storage costs and optimizing transportation costs than transported entirely by truck. Form that helps company managers be more flexible in which mode of transportation to use to optimize shipping processes and costs.