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3598. Optimizing Industrial Order Fulfilment: A Decision Support System for Efficient Intra-logistics
Invited abstract in session TD-45: Decision Support for Sustainable Operations, stream Decision Support Systems.
Tuesday, 14:30-16:00Room: 30 (building: 324)
Authors (first author is the speaker)
| 1. | Marco Taccini
|
| Department of Sciences and Methods for Engineering, University of Modena and Reggio Emilia | |
| 2. | Giulia Dotti
|
| University of Modena and Reggio Emilia | |
| 3. | Manuel Iori
|
| DISMI, University of Modena and Reggio Emilia | |
| 4. | Anand Subramanian
|
| Universidade Federal da Paraíba |
Abstract
This study addresses the improvement of order fulfilment in industrial settings with centralized order consolidation and distributed warehouses. To ensure homogeneity and customer satisfaction when transporting products to the central facility, logistics operators need to make decisions about warehouse management, transportation modes, stock unit configurations, and product features. Many companies rely on manual information flow to achieve these objectives, resulting in costly and time-consuming operations. Here we propose a Decision Support System (DSS) that integrates information flow digitalization and material flow optimization. Optimization is accomplished through an integer linear programming model that considers all the factors listed above. Digitalization relies on a scalable software infrastructure that periodically gathers commercial information, checks product availability, runs the optimization model, and integrates decisions into the enterprise resource planning system. The DSS was developed in collaboration with an international ceramic tile company. Compared to manually implemented operations, the results reveal a significant reduction in transportation costs, ranging from 24% to 40%, along with estimated time savings of about 120 hours per month. Therefore, the implementation of the DSS offers substantial cost savings by optimizing stock transfers and maximizing valuable working hours.
Keywords
- Decision Support Systems
- Industrial Optimization
- Logistics
Status: accepted
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