Applying an integrated logistics network design and optimisation model: the Pirelli Tyre case

Alessandro Creazza, Fabrizio Dallari, Tommaso Rossi
2012 International Journal of Production Research  
The aim of the present paper is to provide an application to a real life supply chain context (i.e. the Pirelli Tyre European logistics network) of an integrated logistics network design and optimisation model. Starting from the analysis of supply chain under study and of the configuration problem to be solved, we identified the most suitable approach: a mixed integer linear programming optimisation model endowed with a series of guidelines for gathering and processing all the data necessary to
more » ... set-up and run the model. The application of the selected integrated design and optimisation model to the Pirelli Tyre case allowed obtaining significant cost savings related to three different service level scenarios. Thus, the applied model could be profitably implemented by supply chain and logistics managers for optimising various operating contexts. Moreover, the exemplified data mapping section represents a useful guideline, which can be applied by practitioners to gather and handle the high volume of data necessary for running the model in a real-life context. In conclusion, being the current state of the art particularly wanting of exhaustive supply chain design models, the implemented integrated approach represents a significant contribution to the existing body of knowledge on supply chain configuration.
doi:10.1080/00207543.2011.588614 fatcat:enmyr6srmrg5zihqlokhad2a44