Nu-kote’s Spreadsheet Linear-Programming Models for Optimizing Transportation

Larry J. LeBlanc (), James A. Hill (), Gregory W. Greenwell () and Alexandre O. Czesnat ()
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Larry J. LeBlanc: Owen Graduate School of Management, Vanderbilt University, 401 21st Avenue South, Nashville, Tennessee 37203
James A. Hill: Owen Graduate School of Management, Vanderbilt University, 401 21st Avenue South, Nashville, Tennessee 37203
Gregory W. Greenwell: Nu-kote International, Inc., 200 Beasley Drive, Franklin, Tennessee 37064
Alexandre O. Czesnat: Owen Graduate School of Management, Vanderbilt University, 401 21st Avenue South, Nashville, Tennessee 37203

Interfaces, 2004, vol. 34, issue 2, 139-146

Abstract: Nu-kote International manufactures ink-jet, laser, and toner cartridges; ribbons; and thermal fax supplies. We developed spreadsheet linear-programming models for planning shipments of finished goods between vendors, manufacturing plants, warehouses, and customers to minimize overall cost subject to maximum-shipping-distance policies. Nu-kote used versions of these linear programs (LPs) to model supply chains with different warehouse configurations. The LPs have between 5,000 and 9,700 variables and 2,452 constraints. Nu-kote has used these LPs for an inherently nonlinear problem to identify improved shipments that will reduce annual costs by approximately $1 million and customer transit time by two days. It has already saved $425,000 from insight gained from the model.

Keywords: programming: linear; large-scale systems; transportation: freight-materials handling (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (2)

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