Profit Maximization and Vehicle Fleet Planning for a Harbor Logistics Company


2018

Shamray N. B., Nina A. Kochetova

Chapter

Optimization Problems and Their Applications // 7th International Conference, OPTA 2018, Omsk, Russia, July 8-14, 2018, Revised Selected Papers

Springer, Communications in Computer and Information Science (CCIS)

volume 871

331-342

1865-0929/978-3-319-93799-1, 1865-0937/978-3-319-93800-4

We present a new optimization model to maximize the total operating profit of a harbor logistics company on a finite time horizon. Some local providers supply the company with a scrap-metal materials of different qualities. The materials are reprocessed into the high-quality product and exported abroad by different types of ships. The company has to cover the purchase cost for the materials, the transportation cost to deliver the materials, the reprocessing and storage cost in a warehouse, shipping cost, and payment for international declarations. To find the best strategy for the company we present a mixed integer nonlinear model. We linearize the objective function and aggregate the set of providers in order to apply CPLEX software efficiently. We conduct computational experiments on real life test instances and discuss how to use the model for planning the fleet of vehicles, the capacity of the warehouse, and the price strategy for the company.

10.1007/978-3-319-93800-4_27

https://link.springer.com/chapter/10.1007/978-3-319-93800-4_27