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This project is based on the challenge by a Portuguese retail company to optimize the decision-making of the purchasing managers. To this end, the company proposes to minimize the costs of the entire supply chain and speci cally to minimize the ratio between operating and merchandise costs. This ratio represents how much it costs for the company to move the products along the supply chain. Thus, to meet the challenge, the data considered by the company to 27 products from two suppliers. Analyzing the period from May 2017 to April 2018 two quantitative models were developed. The rst is a Mixed Integer Linear Programming model that nds the best solution for the full 12 months, making it easier for the purchasing manager to make a decision on how to order the product and which storage mode is most advantageous. This model concludes that the products should be mostly ordered on pallets using PBS storage mode, which will lead to a saving in the total costs of the company of 10.19% for all 27 products under analysis. Regarding the ratio obtained between operating and merchandise costs, the model shows an improvement in almost all products. The second model is a multiperiod model of Mixed Integer Nonlinear Programming developed to respond to how to order the product and which storage mode is most advantageous and whether products deliveries should be carried out once or twice a week. To do so, considering only the months of March and December, 4 periods are analyzed in each month for once a week deliveries and 8 periods each month for twice a week deliveries. Thus, by analyzing the two scenarios it can be seen that in both products they should be ordered preferably in FC using XD storage mode. However, for twice a week deliveries the ratio of operating costs to merchandise costs across all 27 products is lower, so it is more advantageous for purchasing managers to negotiate with suppliers twice a week. As such, it is important to point out that Supply Chain Management has been a critical business problem, increasingly studied. This is because planning of the entire supply chain encompasses a set of interconnected decisions, making all of its planning complex, which in turn led to the development of quantitative models to support decision-making in the di erent domains of the supply chain.
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This project is based on the challenge by a Portuguese retail company to optimize the decision-making of the purchasing managers. To this end, the company proposes to minimize the costs of the entire supply chain and speci cally to minimize the ratio between operating and merchandise costs. This ratio represents how much it costs for the company to move the products along the supply chain. Thus, to meet the challenge, the data considered by the company to 27 products from two suppliers. Analyzing the period from May 2017 to April 2018 two quantitative models were developed. The rst is a Mixed Integer Linear Programming model that nds the best solution for the full 12 months, making it easier for the purchasing manager to make a decision on how to order the product and which storage mode is most advantageous. This model concludes that the products should be mostly ordered on pallets using PBS storage mode, which will lead to a saving in the total costs of the company of 10.19% for all 27 products under analysis. Regarding the ratio obtained between operating and merchandise costs, the model shows an improvement in almost all products. The second model is a multiperiod model of Mixed Integer Nonlinear Programming developed to respond to how to order the product and which storage mode is most advantageous and whether products deliveries should be carried out once or twice a week. To do so, considering only the months of March and December, 4 periods are analyzed in each month for once a week deliveries and 8 periods each month for twice a week deliveries. Thus, by analyzing the two scenarios it can be seen that in both products they should be ordered preferably in FC using XD storage mode. However, for twice a week deliveries the ratio of operating costs to merchandise costs across all 27 products is lower, so it is more advantageous for purchasing managers to negotiate with suppliers twice a week. As such, it is important to point out that Supply Chain Management has been a critical business problem, increasingly studied. This is because planning of the entire supply chain encompasses a set of interconnected decisions, making all of its planning complex, which in turn led to the development of quantitative models to support decision-making in the di erent domains of the supply chain.
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