An Integrated Load Planning Algorithm for Outbound Logistics at Webb Wheel
We develop an integrated model to optimize loading and routing decisions of an auto-parts supplier’s outbound supply chain. Three transportation modes, dynamic demands, and limited inventory are some challenging aspects. We decompose the problem into two sub-problems involving assignment of customers into clusters and routing customers. The algorithm is run daily with varying dispatch rules. The results show the impact of customer locations, inventories, and due dates on outbound logistics costs.