The HLL Project : Optimization of Outbound Logistics

The thesis on this project can be found in the following pages. The project was developed with the following languages and software:
  • Personal Oracle 7
  • Developer 2000
  • PL/SQL
  • Microsoft Excel
  • Visual Basic Macros (VBA)
  • Visual Basic 6.0
  • Lindo

Abstract

This Project deals with the optimization of outbound Logistics for a fertilizer major. The fertilizer needs to be distributed to 200 warehouses throughout India from a few primary and secondary sources. It is aimed towards Dynamic Production Distribution Planning, Dispatch efficiency module design, Weekly dispatch planning, optimizing all existing ways and methods used to handle outbound Logistics. Then every module is integrated into a Decision Support System, using ORACLE in the back-end and Graphic User Interface in the front end, powered by Designer2000, Microsoft Excel and PL/SQL. This Project is done under Damodar Acharya, Professor and Chairman, Vinod Gupta School of Management, IIT Kharagpur and was my Final Year dissertation.

Brief summary of the steps followed in the project

  1. Take distance data and cluster the warehouses. Use Dijkstra's shortest path algorithm.
  2. For each source to cluster, calculate CAP (Customer Account Profitability) for all the available modes (rail and road) and ways of sending (direct to each warehouse or direct to cluster). Includes price difference for the imported fertilizer and produced fertilizer. Includes inventory costs.
  3. Solve a optimization problem for selecting the best mode and best way of replenishing the demand.
  4. With the solution, analyze the demand and obtain a vehicle schedule and a dispatch schedule.
  5. Perform sensitivity analysis: volume fluctuation, change in mode of transportation etc.

Project Thesis
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