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Theory and Methodology of  Flow Optimization  (draft 4) 13 April 2018
  • Sajini Anand P S
Sajini Anand P S

Corresponding Author:sajini.anand@maersk.com

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The objective of the current document is to align the model to include the goals of the user stories in backlog for AMI-15 Project (Discussion with Ross and Team on 6 April 2018). The Mathematical model presented here has a framework of Linear and Mixed Integer Programming methods, and it relies on optimization strategies of Operational Research. 
Assume that we have a list of Purchase Orders (each associated with a volume, weight, estimated date of delivery) and a list of Containers  (each associated with a cost, capacity,  weight constraint, Journey details- Starting Journey date, Duration in Transit and ending Journey Date ).  The following scenario defines the global optimization problem. Given n Purchase Orders (POs) and m available Containers, the objective is to create a Load Plan to allocate a set of containers to accommodate all the POs by optimizing the Containers such that all the POs reach the destination on or before their expected date of delivery. Optimization strategy requires minimizing the cost of the containers (which itself can be a variable based on available vessels and their timings), minimizing the number of containers needed for effective packing, and minimizing the unused volume of the containers, and selection of cheapest vessel for ocean freight for maximizing the profit.