Logistics flow improvement in the leather goods industry
Event Title
32nd Flexible Automation and Intelligent Manufacturing International Conference - FAIM 2023
Year (definitive publication)
2023
Language
English
Country
Portugal
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Abstract
This paper presents an optimization case study developed on a leather company, which aims to improve the operational performance at the technical team level in routing and apply improvements that impact this matter.
Being initially intuitive routes, this project aims to create a route optimization model. Since the assignment of work hours by the central team varies, there is a fluctuation in the material shipped to each customer. Considering that this fluctua-tion is relatively small and only happens every quarter, the fixed route system can be considered as functional, having to be updated when there is a new time allo-cation. Thus, the objective is to minimize the total transportation cost, which in this case is provided by the cost per kilometer. To this end, five scenarios were studied, obtained by a decision support tool.
The VRPTW model, together with decisions concerning the routes, namely cross-docking in Orléans, allowed the reduction of costs by more than 30%, maintaining the customer's and company's requirements concerning the service level. These gains refer to one of the scenarios studied, in which it was possible to guarantee all last-mile distribution with three vans, with time windows and demands as expected. Although the scenario with the greatest margin for gains is the one that presents a distribution center according to the gravity method, for such, it would be necessary to rent a warehouse in the Perrusson area (area indi-cated by the gravity method).
Acknowledgements
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Keywords
Vehicle Routing Problem (VRP),Supply Chain,Logistics,Leather Industry.