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Aggregate logistics optimization for a large beverage company Wu, Ernest Hongtu

Abstract

In 2002, The Centre for Operations Excellence (COE) at UBC Commerce carried out a logistics optimization project for Mark Anthony Group (MAG), a manufacturer and distributor of premium wine and alcoholic beverages. The goal of the project was to determine a production, distribution and inventory plan for MAG's "Mike's" products in the US market, that minimized the total logistics cost. It is a multi-commodity, multi-period network flow problem formulated as a linear program with 48,000 decision variables and over 16,000 constraints. Based on the LP model, COE developed a customized computer based planning tool, Aggregate Logistics Optimization Tool (ALOT). ALOT is designed to be an operational tool, providing recommendations on monthly production, distribution and inventory plans for MAG planners. Also, ALOT could be used as a tactical planning tool, supporting MAG's capacity planning, investment, transportation mode choice and other business decisions. ALOT has changed the way MAG does business planning. With ALOT being implemented by MAG, the production plan in 2003 is expected to be significantly different from that in 2002.

Item Metadata

Title
Aggregate logistics optimization for a large beverage company
Creator
Wu, Ernest Hongtu
Publisher
University of British Columbia
Date Issued
2002
Description
In 2002, The Centre for Operations Excellence (COE) at UBC Commerce carried out a logistics optimization project for Mark Anthony Group (MAG), a manufacturer and distributor of premium wine and alcoholic beverages. The goal of the project was to determine a production, distribution and inventory plan for MAG's "Mike's" products in the US market, that minimized the total logistics cost. It is a multi-commodity, multi-period network flow problem formulated as a linear program with 48,000 decision variables and over 16,000 constraints. Based on the LP model, COE developed a customized computer based planning tool, Aggregate Logistics Optimization Tool (ALOT). ALOT is designed to be an operational tool, providing recommendations on monthly production, distribution and inventory plans for MAG planners. Also, ALOT could be used as a tactical planning tool, supporting MAG's capacity planning, investment, transportation mode choice and other business decisions. ALOT has changed the way MAG does business planning. With ALOT being implemented by MAG, the production plan in 2003 is expected to be significantly different from that in 2002.
Extent
10170539 bytes
Genre
Thesis/Dissertation
Type
Text
File Format
application/pdf
Language
eng
Date Available
2009-10-17
Provider
Vancouver : University of British Columbia Library
Rights
For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use.
DOI
10.14288/1.0090976
URI
http://hdl.handle.net/2429/13980
Degree
Master of Science in Business - MScB
Program
Business Administration
Affiliation
Business, Sauder School of
Degree Grantor
University of British Columbia
Graduation Date
2002-11
Campus
UBCV
Scholarly Level
Graduate
Aggregated Source Repository
DSpace

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For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use.