A mixed-integer quadratic programming production-transportation problem
by Dominic Otoo; Bernard Atta Adjei; Sampson Takyi Appiah
International Journal of Operational Research (IJOR), Vol. 48, No. 3, 2023

Abstract: One economic challenge encountered by most companies that produce and haul their local products to independent distributors is accurately identifying the optimal routes to each distribution centre and assigning production machinery. The authors in this paper have collaboratively developed a mixed-integer quadratic model that optimally assigns machines and vehicles to produce and properly distribute goods to multiple distributors in 105 locations dotted across the 16 regions of the country based on their demand constraints. Our formulated model and analysis show that the production cost accounts for 0.7933 and transportation cost accounts for 0.2066 of the total cost. Our results have convincingly shown a cost reduction of 10% and 25% respectively in terms of production and transportation cost as compared to the cost currently operated by the two local factories under consideration.

Online publication date: Fri, 10-Nov-2023

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