Optimization Models Performances for Transportation Cost Minimization

Optimization Models Performances for Transportation Cost Minimization

SERKAN OZDEMIR, Fevzi
ERGULEN, Ahmet

Transportation is the foremost activity at every stage of logistics (supply, production and distribution stages). It constitutes the huge part of logistics, because of its relative size in total logistics costs. That might be different sector by sector but the rate of the transportation in all logistics activities is approximately around 50-65 percent. Transportation is a term which can be defined as the physical movement of inventories such as raw materials, semi-finished goods and finished goods from one location to another. Shipping of products into firm storage after they have bought from suppliers, carrying of the storage items to manufacturing, and delivery of the manufactured items to warehouses or dealers to be sold, and delivery of the sold products to customers are some sub-activities of transportation. In order to achieve transportation with minimal cost, first of all the optimal transportation alternatives should be implied. In the literature there are many researches which confirm this statement. But the applied technique for decision problem is as important as transportation alternatives. For determining of optimal solution there are certain models. This study aims that to compare of those models performances on a real case hypothetically. Employed models are integer linear programming; goal programming and fuzzy-logic based linear programming. Keywords: Logistic Activities, Transportation Costs, Optimization.

Article
PeerReviewed

ISSN 978-9958-834-23-3

International Burch University

2013-05-10

1476