Optimization of container load plan for multi destination cargo consolidation

Abstract

ln today's highly competlttve global marketplace the pressure on orgaruzatlons 1s to find new ways to create and deliyer value to customers. In the last two decades, logistics and supply chain management has mewed to the centre stage, and has becon1e a key determinant of business competitin'ness. \X/ith new concepts of Logistics & Supply chain managen1ent, eYery organi/,ation in the world is trying to optimise their chain by adopting new ways and means of reducing their operational cost br eliminating waste and introducing new operational procedures.1\Iarks and Spencer is a customer \vho procures goods from many countries all oYer the world \vhich inn>hcs a greater amount of transportation. It is a major component when considering total logistics & supply chain cost. l n order to reduce and control the transportation cost per item, it is necessary to console goods into containers \\·hich will maximi/,e the urili/,;ltion.. \fter a derail study, it was rncalcd that due to inefficient loading or stuffing methods, company had to incur additional cost. 'J'herefore, the supply chain team has inrroduced a set of rules & guidance to adhere when performing consolidation operation that minimi/,es total cost. Further, manual planning of load building may not alwa\ s lead to '• the optimum solution and could e\·en be inaccurate at times.Therefore it could be considered, as planning tu be a critical role in the process . . \ utomating the planning would help to eliminate all these concerns including time consumptioi1 of manual work which will be an indirect expense to the compam. Therefore, with the usc of Integer I ,incar Programming in Operation Research, this problern has been sohcd within the scope of this project.The operational difficulties of implementing this solution and the areas for further dc\clopmcnt arc also been discussed while discussing and concluding on the project scope. l·unher, its possibilities of customizing the model to suit similar operational models in the market arc discussed.