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Nu-kote’s Spreadsheet Linear-Programming Models for Optimizing Transportation

Author

Listed:
  • Larry J. LeBlanc

    (Owen Graduate School of Management, Vanderbilt University, 401 21st Avenue South, Nashville, Tennessee 37203)

  • James A. Hill

    (Owen Graduate School of Management, Vanderbilt University, 401 21st Avenue South, Nashville, Tennessee 37203)

  • Gregory W. Greenwell

    (Nu-kote International, Inc., 200 Beasley Drive, Franklin, Tennessee 37064)

  • Alexandre O. Czesnat

    (Owen Graduate School of Management, Vanderbilt University, 401 21st Avenue South, Nashville, Tennessee 37203)

Abstract

Nu-kote International manufactures ink-jet, laser, and toner cartridges; ribbons; and thermal fax supplies. We developed spreadsheet linear-programming models for planning shipments of finished goods between vendors, manufacturing plants, warehouses, and customers to minimize overall cost subject to maximum-shipping-distance policies. Nu-kote used versions of these linear programs (LPs) to model supply chains with different warehouse configurations. The LPs have between 5,000 and 9,700 variables and 2,452 constraints. Nu-kote has used these LPs for an inherently nonlinear problem to identify improved shipments that will reduce annual costs by approximately $1 million and customer transit time by two days. It has already saved $425,000 from insight gained from the model.

Suggested Citation

  • Larry J. LeBlanc & James A. Hill & Gregory W. Greenwell & Alexandre O. Czesnat, 2004. "Nu-kote’s Spreadsheet Linear-Programming Models for Optimizing Transportation," Interfaces, INFORMS, vol. 34(2), pages 139-146, April.
    • Handle: RePEc:inm:orinte:v:34:y:2004:i:2:p:139-146
    DOI: 10.1287/inte.1030.0051
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    References listed on IDEAS

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    Cited by:

    1. LeBlanc, Larry J. & Grossman, Thomas A. & Bartolacci, Michael R., 2019. "Ensuring scalability and reusability of spreadsheet linear programming models," Omega, Elsevier, vol. 84(C), pages 55-69.
    2. Larry J. LeBlanc & Michael R. Galbreth, 2007. "Implementing Large-Scale Optimization Models in Excel Using VBA," Interfaces, INFORMS, vol. 37(4), pages 370-382, August.

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