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Logistics chain optimization project

Success story

Probayes can help you optimize your logistics chain every step of the way

Challenge

Probayes broke the problem into three main steps:

Optimize daily shipments Right-size raw materials and/or finished product inventories
Enable interactions between different production sites with different amounts of inventory
Test the production line’s capacity to reconfigure itself to respond to increased demand or lower capacity at one of the production sites

The project

Probayes’ operational research team worked on all three of these steps:

They modeled the continuous process for a finite time horizon, factoring in more than 150,000 variables and constraints, depending on the number of sites and days included in the model
They also developed a linear program solver
Finally, a tool was developed to:

Load the various datasets (logistics chain, site characteristics, etc.)
Set up and run simulations (unforeseen events, costs, etc.)
Display the results

Results

With this solution, a logistic chain’s response to an unforeseen event can be simulated so that potential bottlenecks can be identified.

Each site’s operating profile can then be established so that the optimal amount of inventory can be determined.

The tool developed (using Python) is available through a private browser. Users inside the company can modify the input data and very rapidly solve the problem and display the results.

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