Skip to main content
Article thumbnail
Location of Repository

Bosch/Siemens Optimizes Inbound Logistics

By Benjamin K. Peterson, Willem-jan Hoeve and Laurens G. Debo

Abstract

Many companies ship parts and materials from a multitude of suppliers scattered over a large area. Because the number of supplier relationships may be large and complex, the procurement problem is often divided among parties that scarcely coordinate. As a result, opportunities exist to reduce total logistical costs by consolidating orders and sharing trucks. For the North-American division of the Bosch/Siemens Home Appliances Corporation, we study how to design and implement such coordination while maintaining flexibility with respect to market forces and changes in demand volumes. Our proposed solution combines the incoming freight from different suppliers in what we call ‘flex-runs’, to better utilize truck space. The result is an expected transportation cost reduction of up to 25 % with an overall increase in robustness with respect to volume fluctuations

Topics: Logistics, Freight Consolidation, Integer Programming, Column Generation
Year: 2010
OAI identifier: oai:CiteSeerX.psu:10.1.1.170.3328
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www.andrew.cmu.edu/user... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.