Optimization of container load plan for multi destination cargo consolidation

Abstract

In today's highly competitive global marketplace the pressure on organizations 1s to find new ways to create and deliYcr value to customers. In the last two decades, logistics and supply chain management has moved to the centre stage, and has become a key determinant of business competitiveness. \'Vith new concepts of Logistics & Supply chain management, every organization in the world is trying to optimise their chain by adopting new ways and means of reducing their operational cost by eliminating \vaste and introducing new operational procedures.i\Iarks and Spencer is a customer who procures goods from nwny countries all m~cr the world which invokes a greater amount of transportation. It is a n1ajor CotTlponent \vhen considering total logistics & supply chain cost. In order to reduce and control the transportation cost per item, it is necessary to console goods into containers \vhich will maximize the utili?:ation.. \ftcr a detail stmh, it was 1-c,~calcd that due to inefficient loadinl! or stuffinl! methods, _, (l (! company had to incur additional cost. Therefore, the supply chain team has introduced a set of rules & guidance to adhere when performing consolidation operation that minimi7es total cost. l;urthcr, manual planning of load building 111ay not alwa\·s lead to the optimum solution and could lTCn he inaccurate at times.Therefore it could be considered, as planning to he a critical role in the process. \utomating the planning would help to eliminate all these concerns including time consumption of manual \\·ork which \\·ill be an indirect expense to thL· compam·. Therefore, \\·ith the usc of Integer Linear Programming in Operation Research, this problem ha~ been sohcd \Yithin the :;cope of this project. The operational difficulties of implementing this solution ami the areas for further dnclopm.ent arc also been discussed while discussing and concluding on the proJect scope. hmher, its possibilities of customi;;:ing the model to suit similar operational models in the market arc discussed. -