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Article

Cluster-based supply chain logistics: a case study of a Ukrainian food distributor

IMA Journal Management Mathematics. 2016. Vol. 28. No. 4. P. 553-578.
Kuznietsov K. A., Gromov V., Skorohod V. A.

This article deals with the logistics of a Ukrainian food and consumer goods distributor. Our main goal is to reduce the field costs of the company, which comprise the agent labour costs and company's transportation charges. The mathematical model used is an integer programming optimization one. The problem is heuristically decomposed into subproblems; methods to solve these subproblems are presented. In order to reduce company costs one is able to reduce company agents' staff, to optimize agents' daily routes, to minimize overall goods delivery charges and to reduce the number of rented vehicles. The developed software system offers considerable field costs reduction (28%), decision-making transparency for the planning group and a less prominent influence of human factors on decisions and schedules.