The Design of the Physical Distribution System with the Application of the Multiple Objective Mathematical Programming. Case Study
The paper presents the multiobjective optimization of the all-Polish physical distribution system of cosmetics, detergents and washing articles. The research report refers to a real life case. The optimization process is focused on minimization of both total distribution cost and the delivery time within the distribution system. The primary concern of the project is to define the number and the location of the warehouses in the distribution network. The optimization process leads to the redesign of the existing distribution system. The problem is formulated in terms of bi-criteria mathematical mixed-integer programming. It has been solved with the application of an extended version of MS Excel Solver — Premium Solver Plus. A set of Pareto-optimal distribution systems has been generated. The number of Regional Distribution Centers (RDC-s) ranges from 7 to 23 in Pareto-optimal solutions. The results of the experiment are promising.
KeywordsDistribution System Delivery Time Potential Location Single Objective Optimization Total Annual Cost
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