DETERMINATION OF DISTRIBUTION HUB OPERATING STRATEGY AS IP MODEL
A CASE STUDY IN OIL AND GAS INDUSTRY
DOI:
https://doi.org/10.61841/0v603w49Keywords:
Integer Programing (IP), Distribution Network Design (DND), Operations Research (OR), Distribution Strategy, Sensitivity Analysis, 3rd Party Logistics (3PL) OutsourcingAbstract
Supply chain is considered as one of the key areas of companies’ success and it should be designed appropriately to be compatible with companies’ objectives and strategies. In this paper, a case study of supply chain network redesign in oil and gas industry will be thoroughly studied, analyzed and concluded. This research has been applied and deployed on an oil and gas local company called “X-LUBE”. In this study; an integer linear programing (ILP) optimization model is built and solved to determine the most cost efficient operating strategy for X-LUBE company distribution hub. Also, relevant sensitivity analysis is conducted on resulted optimal strategy.
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