| Article ID: | iaor20113380 |
| Volume: | 8 |
| Issue: | 3 |
| Start Page Number: | 298 |
| End Page Number: | 312 |
| Publication Date: | Mar 2011 |
| Journal: | International Journal of Logistics Systems and Management |
| Authors: | Santoro Miguel C, Ronconi Debora P |
| Keywords: | supply & supply chains, programming: dynamic, combinatorial optimization, programming: integer |
This study describes the Mixed Integer Linear Programming (MILP) model developed for a Brazilian company CVRD that manages the only active producing unit of potassium chloride in Brazil. The extraction of potassium chloride is characterised by a constant level and a seasonal demand, since it is an agricultural input. In this study, a dynamic multiperiod model was developed for warehousing planning and distribution. The application of this model helped in the decision‐making process of establishing new warehousing systems. Possible gains that can be obtained in the negotiation of delivery dates and sales prices are also analysed.