OPTIMIZATION MODELS PERFORMANCES FOR TRANSPORTATION COST MINIMIZATION
TAŞIMA MALİYETLERİNİN MİNİMİZASYONUNDA OPTİMİZASYON MODELLERİNİN PERFORMANSI

Author : Fevzi Serkan ÖZDEMİR -- Ahmet ERGÜLEN
Number of pages : 895-914

Abstract

Transportation is the foremost activity at every stage of logistics (supply, production and distribution stages). It constitutes the huge part of logistics, because of its relative size in total logistics costs. The rate of the transportation in all logistics activities is approximately around 50-65 percent, however, that might be different sector by sector. Transportation is a term which can be defined as the physical movement of inventories such as raw materials, semi-finished goods and finished goods from one location to another. Shipping of products into firm storage after they have bought from suppliers, carrying of the storage items to manufacturing, and delivery of the manufactured items to warehouses or dealers to be sold, and delivery of the sold products to customers are some sub-activities of transportation. In order to achieve transportation with minimal cost, first of all the optimal transportation alternatives should be implied. In the literature there are many researches which confirm this statement. But the applied technique for decision problem is as important as transportation alternatives. For determining of optimal solution there are certain models. The aim of this study is comparing the performances (possible cost savings) of employed models (linear programming {LP}, goal programming {GP}, and fuzzy logic based integer linear programming {FLIP} in the case analyses.

Keywords

Optimization models, transportation, integer linear programming, goal programming, fuzzy logic.

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