The course introduces the optimization and simulation problems that occur in supply chain management and international transportation logistics.
Syllabus:
A) Supply chain management (Prof. Carlo Filippi):
1. An overview of logistics and supply chain management: the complexity of the supply network, objectives and uncertainties, cycle view and push-pull view.
2. Demand forecasting in a supply chain: components of forecasts and forecasting methods, time series forecasting methods.
3. Inventory management: exploiting economies of scale (EOQ model and order aggregation), facing uncertainty (safety stock, periodic vs. continuous replenishment), risk pooling.
4. Network planning: factors and data influencing network design, data aggregation, optimization and simulation, location and flow models.
5. Distribution strategies: direct shipping, intermediate points, cross-docking, transhipment.
6. Sourcing and procurement decisions: in-house or outsourcing decisions, supplier selection, e-markets.
7. Pricing and revenue management: customer segments, perishable assets, bulk and spot customers.
8. Coordination in a supply chain: the value of information and the bullwhip effect, supply contracts and strategic alliances.
B) International Transportation Logistics (Prof. Luca Bertazzi):
1. The Transportation Problem: the case with variable transportation costs, the case with variable production and transportation costs, the case with fixed transportation costs, the case with variable production costs and fixed transportation costs, the case with variable production and transportation costs and inventory costs, solution methods (graphical method, algorithms, optimization software).
2. Long-Haul Transportation Problems: the Shortest Path Problem, the Single Link Shipping Problem, the Loading Problem.
3. Intermodal Transportation Systems: the Sequence of Links Problem, the Stochastic Intermodal Transportation Problem (optimization, simulation and integration).
4. Software (optimization and simulation).