Optimizing Linear Networks

Dustin Mattison from TheFutureOfSupplyChains.com interviewed Fernando Alvarez, who discussed ‘Optimizing Linear Networks’. 

Logistics Network Modeling can help you evaluate trade-offs between service level and cost in your logistics network. Optimizing your logistics network can be a complex problem to solve. You need qualified supply chain consultants who know how to devise proper algorithms to solve specific logistics network design problems. The end results will include cost savings and better service levels.

Key Takeaways

• Today the top 100 liner companies running fleets of about a dozen vessels or more are basically developing their schedules and rotations by hand, or using Excel.
• This creates tremendous sub-optimality in their system.
• Using optimization you can transport the same number of containers at very high levels of service, but with lower bunker consumption and fewer vessels.
• It would be very easy to design a network that is extremely cheap, but that would provide a very low level of service to the shipper. At the same time it would be very easy to design a network that provides an extremely high level of service to the shipper, but that would come at a very high cost.

The interview in its entirety can be seen here.

About the Author

Dustin Mattison | Blogger on TheFutureOfSupplyChains.com

About the Interviewee

Fernando Alvarez