A warehouse location optimisation using mixed integer linear programming: a decision support tool with visualisation

Автор: Ngoi Soo Wei, Ho Ming Kang

Журнал: Science, Education and Innovations in the Context of Modern Problems @imcra

Статья в выпуске: 1 vol.5, 2022 года.

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The purpose of this particular research will be to produce a choice support device with regard to suppliers which are freelancing storage space plus strategies to be able to 3rd party company. The specific device is made having an example within The far east in addition to ruse related to fresh datasets from your producer. An expense style making use of quantity, space for storage price, dealing with cost and even transport costs is utilized within the marketing pro-cedure. Combined Integer Geradlinig Development will be used together with solved which stockroom will be chosen regarding ideal system. The consequence of your choice assistance device is generally an imagine dash to exhibit the particular assessment between current com-munity in addition controlled enhance program as well as the expenses. The outcome demon-strated that this value enhancement will be accomplished using the improve selling price design.

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Warehouse location optimisation, network optimisation, mixed-integer linear programming, visualisation dashboard

Короткий адрес: https://sciup.org/16010142

IDR: 16010142

Текст научной статьи A warehouse location optimisation using mixed integer linear programming: a decision support tool with visualisation

Stockroom area optimization is utilized to select the place to create or even rent the particular stockroom using the reason behind reducing the price of transportation in order to clients. In addition , there are several some other unique sectors has its own similarly important 214

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association reasons such as atmosphere issue simply by loss of co2 release via transport car, or perhaps item top quality just like vaccines inside chilly string and even dairy products merchandise that has restriction upon transfer period. Stockroom program optimization will be section of the optimization with regard to offer cycle system among manufacturer, facilities in addition client areas which often was executed to enhance the specific effectiveness associated with need and provide community substantially. Some cost in many cases are typically the dimensions from the performance from your ideal system.

With regard to producers which have big consumer bottom more than a broad physical area, the particular difficulty related to storage place system will be higher. The in many cases are depending on exterior experts regarding factory area marketing research due to constraint regarding professional understanding plus marketing equipment inside the business. Typical discussion solutions consist of modeling utilizing historic information as well as suggesting perfect method treatment for organization. Nonetheless, you will see space in between best answer by means of specialist as well as the actual performance because of bodily motion involving stockroom place include considerable price in addition to time period. Consultant’s suggestion connected with excellent answer may not be extensive as a result of risky enhancements made on distribution community. Because delivery might take two to three many years to attain suitable answer, the answer might not be optimum following this type of any period of time of your time. Therefore, it is very important possess a continuous checking technique around the remedy throughout setup phase, to lessen the specific distance associated with ideal option and even genuine outcome.

You will find restricted research about storage place optimization issue within just production together with manufacturing since the web site place offers reduce flexibility in case in comparison to some other spot marketing problem like position with regard to storage space objective which includes submission center additionally combination middle. The area optimization examine more likely to pay attention to drape plus danger minimization whenever interruption occur in among the creation websites (Afify, Soeanu, in addition to Awasthi, 2020). Occasionally a mixture study regarding safe-keeping area and even internet site place issues may be created for particular explanation. Mother, Li and Liu (2020) analyzed on maximum site linked to each grow and also selection centers related to lead-acid electric batteries business, which usually was executed to handle typically the vehicles inside a shut looped together with concern involving feasible likelihood of dangerous product or service any time event occur. When creat- 215

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association ing choices in brand new as well as move service is important for people who do buiness growth, reduction will be continual because of the doubt connected with need. Business may also applied to area through the monetary chance point of view, to reduce the most anticipated reduction from your choice upon area (Khorshidi together with Ghezavati, 2019).

Lots of numerical design may be used to solve place associated concern. For instance , within modernizing waste materials administration location-routing issues, multi-objective combined integer nonlinear advancement (MINLP) design is utilized (Rabbani, Heidari plus Yazdan-parast, 2019; Asefi, Lim as well as Maghrebi, 2019). Çakmak ainsi que ing (2020) when compared binary Compound Swarm Optimization (BPSO) furthermore binary Integer Advancement (BIP) to select logistic heart spot in Turki. These people used BPSO because meta-heuristic strategy as a result of usefulness in addition to strength solving under the radar several website choice trouble along with the effect demonstrated which will BPSO alternative time period has been more efficient when compared with BIP once the program dimension will get bigger. Anand and Kumar (2017) researched after dependable supply middle position issue with minimization associated with complete faltering expense inside submitting system developed because mixed-integer development (MIP) type along with incredibly complicated restrictions on capability and even client task towards the support, consequently geradlinig growth (LR) method has been incorporated to minimize restriction infractions together with produce the rest towards initial difficulty. An additional analyze carried out by simply Hong ainsi que ing. (2018) created the actual construction issue linked to manufacturers, submitter hub plus merchants having an integer enhancement (IP) unit to lower the entire price of beginning service in addition to travel price among services. Ish nest optimisation (ACO) formula will be used intended for as a result of many limitations in addition factors to cut back this intricacy in contrast to standard style and even end result demonstrated that this overall performance change is leaner in addition to much better computational period of time too. Nevertheless , ACO formula computational time period is actually lengthy in contrast to additional methods plus its much less utilized for place marketing trouble however read more about automobile redirecting issue in the previous analysis.

With this research, the maker throughout Client concentrated. It is because Consumer the biggest producing country on the planet (WorldBank, 2019), adding to US$ a few. 896 Trillion which is near to 28% related to worldwide developing really worth additional. Because of this, 3PL services within storage area together with travel in addition grew to become an additional flourishing business inside The far east to be able to accommodate the requirement re- 216

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association garding producer to be able to shop plus travelling the particular recycleables, semi-finished, or even completed components of making business. Consequently , the device throughout Customer one of the most intricate on earth also because of the cause, a new maker within The far east that may currently utilized 3PL providers to get storage space in addition to moving so as to clients will be chosen with this research.

Good earlier scientific studies inside of storage facility site search engine optimization, the majority of the research are often choosing a particular area to do since submissions center instead of utilizing the optimization exploration about current facilities. These types of correctly reduce practicability for that existing processing market given that delegate facility support in order to 3PL offers increased versatility as well as more suitable by simply suppliers. The present research primarily minimal while statistical review, however, not since common choice regarding company customers because each one of the consumers may have various degree of numerical information and even well worth acknowledgement around the researching. Therefore, concentrating on the specific 3PL assembly line place, this particular analysis targeted to build up an expense seo version making use of blended integer thready progress (MILP) design intended for manufacturing facility social networking additionally screen present and also best retail method via a visualisation splash.

  • 2 .0 Methodology

Your choice assistance device will be built inside a Four-steps strategy because demonstrated within Determine one Very first step will be to get ready the information collected through several sources to become use within modeling plus visualisation. The second stage may be the develop the price optimization style. The 3rd stage may be the software via computational test in to the instance. Last stage will be to design and style an internet dash since de-

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association liverable           from the           choice           support           device.

,•        Mathematical

Data Preparation Modelllng

Application

Visualisation

•Data preparation •Warehouse and customer GPS Coordination

•Parameter settings •cost optimize model formulation

♦Computation expenmeiit of the model using R-program to solve

" WLP

•Interactive В dashboar d design to display existing and optimal network

  • Figure 1: Four-steps Methodology Approach to Construct Decision Support Tool for

  • 2.1    Description of Data

WLP

two datasets utilized in this specific research. The far east Stockroom information includes the info associated with seventeen resupply stockroom that will distributing completed items towards clients. The information characteristics within Tiongkok stockroom natural dataset are often explained inside Table one

Table 1: Data attribute and description for China Warehouse data

Data attribute

Description

ERP System

Data source

Site

Manufacturing site

Operation

Type of warehouse

SBU

Business Units related to product

11i Orgn / Plant Code

Warehouse code

Orgn Desc

Warehouse name

ADDRESS    (CHI

NESE)

Warehouse address in Chinese wordings

ADDRESS   (ENG

LISH)

Warehouse address translated into English

Province

Warehouse located province

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association

PROVINCE CODE

Province code define by manufacturer in ERP system

Region

Region of warehouse located in China

Longitude

Longitude of warehouse location

Latitude

Latitude of warehouse location

s_storage_unitcost

Storage cost per m3 subject to contract storage space

t_fixed_handling_cost

Warehouse monthly fixed handling cost

u_handling_unitcost

Warehouse unit handling cost subject to volume

v_handling_unitcost

Warehouser unit transportation cost subject to volume

Table 2 shows the minimum and maximum cost value of each group of fixed and variable cost with rounding up value in different unit.

Table 2: Maximum, Minimum, and round up value for group of cost

s_stor age_unitcost

t_fixed_h andling_cost

u_hand ling_unitcost

v_unit_trasnpo

rtcost_per_ton

Max

imum

125

5200

45

36

Mini mum

65

3100

15

8

roun d up

5

100

5

1

Shipping background dataset could be an additional dataset utilized in this specific research where the info feature will be demonstrated within Desk a few. The particular GPS NAVIGATION dexterity from the client area are produced using the set geocoding totally free web site producer. Geocode. xyz web site is chosen with regard to group code making use of the particular SHIPTO_ADDRESS. Typically the details are taken out as one document as well as the guide Long, plus Lat. are usually mixed in to the delivery historical past dataset.

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association

Table 3: Data attribute and description for Shipment history

Data attribute

Description

FROM_WHSE

Current ship-from-warehouse to respective address

SHIPTO_ADDRESS

Customer address

shippedKG

6 months volume delivered to respective address

Region

Region of warehouse located in China

  • 2.2    Mixed Integer Linear Programming Model

The cost design will be created within numerical functionality to determine the particular enhance system which usually selects upon stockroom selected plus task related to client in order to stockroom. The price design is made along with presumptions underneath:

n The price calculation is founded on six months historic quantity.

n The quantity of facilities is famous in addition choose simply by maker.

n The storage place ability is just not an issue in this instance research.

n The quantity of 1000kg will be consider equal to busy 1 m2 associated with storage space.

This particular expense style will be was executed to solve typically the WLP which will reduce the price inside the submission community. Some we facilities (for i actually sama den-gan a single, two, a few, ., m) is intended to be able to function some m clients (for persis oleh one, a couple of, a few, ., n). Your choice factors and they are understood to be binary parameters where is placed as you in case factory we are chosen so as to assist a number of customers and it is arranged because just one only when a customer m will be specified to some stockroom we for all of thier transport.

  • 1,     if customer j assigned to warehouser i

= 0,      ot erwise

The parameters used to describe the MILP model are as follows:

fl Required storage space in m2

  • 9    J Demand of customer j in kilogram

  • si    Unit cost of storage per month per m2 for warehouse i

    Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association

ti Fixed cost of material handling of warehouse i per month

U( Unit cost of material handling per ton for warehouse i viJ Unit cost for transportation per ton material from warehouse i to customer j

The particular MILP design is utilized to resolve the price style. Goal functionality will be to reduce the charge, which often symbolize from the complete amount of set associated with storage (storage cost and stuck dealing with cost) plus gadget price (unit managing in addition to transport cost) based on client need quantity.

m            m n

Min z=6 Xzi ( fiSi + 4 )+         1000 )(ui + vn)

i-1                 i-1j-1

Subject to

= 1 ,for ∀j i=o n 1.5 V 9j

Л = 6    1000 Yu ,    for ' , >

Yij ≤ ^i ,for ∀ i,j where ft integer, ^i ∈ (0 ,1) ,for ∀i and , ∈ (0 ,1) ,for ∀j

Since the producer will not desire to repair an area with regard to storage space, the particular space for storage will be contemplating from your point of view associated with dedication related to 30 days share sticking to clients. Generally, typically the dedication will be to keep one to just one. five weeks discuss for every client to be able to demand shipping. As a result, it really is asked for to obtain make use of one 5 a few months regarding common quantity in order to determine the particular safe-keeping space/ plus restriction symbolize typically the pointed out storage space necessity. Space for storage, fi is fixed within an integer because space for storage involving only one can also be equal to profession of just one pallet job. This really is primarily the particular restriction where typically the producer will never permit combining space for storing along with other stockroom customers. Following restriction is to make

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association sure stockroom is chosen with regard to price computation, only if task to be able to a minumum of one consumer. Whenever carrying out stockroom decrease, combination in addition to shifting storage place actually, time in addition price are usually substantially higher and even needed nicely prepared set up. Producer might select the quantity of facilities to reduce depends upon sources offered by a period. 2 constant figures are usually explained simply by maker because minutes together with maximum to look for the minimal as well as optimum portion connected with storage place lowering from your current amounts of factory.

  • 2.3 Visualisation

  • 3 .0 Visualisation of the Optimisation Results

To build up the particular dash, Energy DRONE desktop computer will be selected because visualisation device in order to the current plus ideal approach to stockroom. Strength DRONE desktop computer is generally an information visualisation gadget which usually completely match the objective of imagining program. The particular became a member of dataset will be kept in the close by pc document, along with the document will be connected since databases for that developed dial.

Since the joined up with dataset offers the info associated with initial storage place, in addition to specified factory, therefore two circulation roadmaps are created to symbolize this current system as well as the ideal community. Set storage space price and even system storage price are often determined with the addition of collection along with formula inside energy DRONE table. An overall total amount of these kinds of expenses will be demonstrated within the dash because current expense in addition optimum price are generally demonstrated in most movement chart. Common type of typically the splash is easy to exhibit the specific decrease regarding method stream together with attainable price preserving. The specific online function to be incorporated in to the splash will be area. Stockroom area will be take advantage of while filtration system to demonstrate the particular chosen region move guide as well as expense whenever required. This particular dial design will certainly assistance your choice producing upon removal involving storage facility additionally streamlining provide technique with regard to The far east client.

MILP design caters to the information in fact it is found that just one stockroom is chosen with regard to area Eastern, Northeast, Southern plus The west. Task outcome immediately after MILP will be turned into information framework sport stockroom we in the direction of client m inside the exact same location. The outcome within info framework associated with storage 222

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association place in addition consumer identification next utilized to sign up for the specific desk regarding client files in addition to stockroom information simply by region subsection, subdivision, subgroup, subcategory, subclass with regard to visualisation objective inside energy DRONE. The particular coordinating effect because demonstrated throughout Determine 2 and even becoming a member of the actual Stockroom info as well as Client files. The customer information will be following adjustable l, which often furthermore symbolizing the current factory designated towards clients. Typically the storage place information is usually succeeding varying i actually, that this information get will be addressing the perfect factory picked. The outcomes from then on released right into a document upon nearby pc desktop computer.

Figure 2: Matching Result and Joined Warehouse and Customer Dataset

The specific file after that used because databases inside energy DRONE with regard to visualisation objective. The particular dash is made to imagine the present plus enhance system of most areas, using the accessibility to seeing the facts simply by region too. Therefore , the first stockroom dataset in addition delivery background dataset furthermore weight to be able to Energy DRONE info with regard to imagining the original community since assessment. Typically the lat. as well as long, through person content are usually along with brand new line because area GPS NAVIGATION for each client every stockroom to become arranged in the source and placement place associated with circulation chart. The particular size from the circulation will be symbolizing from the amount delivered, as well as the real estate is placed regard-

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association ing source intended for obvious visualisation. The client area is utilized while blocking option, so the current additionally enhance system of each area could be additional seeing when the clients thinking about research regarding particular location simply.

Listed here are the particular splash summary by simply almost all areas through specific locations. Determine a few demonstrated that will complete value is decrease using the improve community for all those parts. Simply by locations, Physique four, Determine five, Number 6 revealed of which Far eastern, Northeast in addition to The southern part of areas are usually showing complete price reduce to get boost program. Just South west location within Shape 7 offers somewhat enhanced within the expense in case combine in to solitary storage place. Therefore , The west area much more affordable with facilities leftover according to present method. Because summary, the specific dash review capable to assistance strategy and also choice upon place to begin typically the combination exercise.

Figure 3: Dashboard overview for all regions

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association

Figure 4: Dashboard overview for East region

Figure 5: Dashboard overview for Northeast region

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association

Figure 6: Dashboard overview for South region

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association

Figure 7: Dashboard overview for Southwest region

  • 4 .0 Conclusion

Stockroom area optimization is usually a good fascinated subject matter within logistic market place plus well-known to be able to producer that take advantage of delegate 3PL companies with regard to storage in addition transport. This particular study evolves a choice support device from the beginning by simply obtaining dataset, building design, server scripting as well as resolving the style making use of software program. The consequence of this particular optimization studies providing an answer which is economical additionally easy to use. They have offered the mention of the organization customers in order to quickly in addition to frequently, uncover the present ideal answer depending on current client foundation and even amount development. Apart from, the cost features together with style with this choice help application has got the flexibility to become additional improve simply by easy personalization inside server scripting process to consider restrictions which will particularly find out merely by 227

Science, Education and Innovations in the context of modern problems - SEI (2790-0169 IMCRA - International Meetings and Conferences Research Association various producers. The thought of applying price marketing design is usually the most preferred type for all those companies. Nevertheless , variety plus capability design and style which usually excluding inside the design will also be found out to become a well-known topics that may be a part of long term research. This specific option assistance device will be versatile to modify in to multi-objectives unit as well, if required.

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