Optimization of the supply chain processes in liquid gas trading

Route & location optimization
for Westfalen AG

There is no most optimal? It does exist! Thanks to our optimization algorithms, Westfalen AG
benefits from holistically optimized supply chain processes.

Challenge

Westfalen AG is a liquefied gas dealer with headquarters in Münster. A large number of large and small customers are supplied daily from plants throughout Germany. The assignment of customers to the filling locations takes place on a static basis. Different, sometimes seasonal, consumption profiles make planning more difficult and, in addition to production costs, also lead to high distribution costs.

Approach

By evaluating the utilization of the filling locations and reassigning customers to the filling locations, the utilization of filling capacities is to be optimized in addition to lowering delivery costs. Various internal company data sources were used to solve the problem.

In addition to the geographical data, tour data, filling and material information for the products are included in the optimization problem. The optimization approaches are based on state-of-the-art algorithms from the field of operations research.

Result

The holistic optimization from filling to delivery to the end customer makes it possible to optimally use the capacities of the filling locations and, in conjunction with an optimized logistics concept, to significantly reduce filling and logistics costs.

Project Information

Industry:
Liquefied Gas Trading

Use Case:
Route- & Location Optimization

Data basis:
Tour Data, Material Data, Costs for Filling & Logistics

Project duration:
5 Months

Tools
R, Python

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