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A Novel Problem for a Vintage Technique: Using Mixed-Integer Programming to Match Wineries and Distributors

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  • Susan Cholette

    (Decision Sciences Department, San Francisco State University, 1600 Holloway Avenue, San Francisco, California 94132)

Abstract

Wineries must find distributors to represent their wines, and distributors seek interesting wines to sell to clients. Wineries and distributors often form partnerships at trade shows. I created a system to qualify potential partnerships for one such trade show, the World Wine Market, by formulating a mixed-integer program that is an embellished transportation model. I based its parameters on answers to a questionnaire I obtained from a subset of trade-show attendees who were seeking partners. Of 675 possible matches between wineries and distributors, the program recommended 31 as the optimal set of matches. This resulted in an allocation of just over 50,000 cases of wine. Participants provided positive feedback. In addition, the program introduced at least one winery and a corresponding distributor who have formed a profitable, long-term partnership.

Suggested Citation

  • Susan Cholette, 2007. "A Novel Problem for a Vintage Technique: Using Mixed-Integer Programming to Match Wineries and Distributors," Interfaces, INFORMS, vol. 37(3), pages 231-239, June.
    • Handle: RePEc:inm:orinte:v:37:y:2007:i:3:p:231-239
    DOI: 10.1287/inte.1060.0263
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    References listed on IDEAS

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    1. L. R. Ford, Jr. & D. R. Fulkerson, 1956. "Solving the Transportation Problem," Management Science, INFORMS, vol. 3(1), pages 24-32, October.
    2. Thomas A. Grandine, 1998. "Assigning Season Tickets Fairly," Interfaces, INFORMS, vol. 28(4), pages 15-20, August.
    3. Jeffrey E. Dillon & Spyros Kontogiorgis, 1999. "US Airways Optimizes the Scheduling of Reserve Flight Crews," Interfaces, INFORMS, vol. 29(5), pages 123-131, October.
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    Cited by:

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    3. Franco Basso & Juan Pablo Contreras & Raúl Pezoa & Alejandro Troncozo & Mauricio Varas, 2023. "Optimizing the wine transportation process from bottling plants to ports," Operational Research, Springer, vol. 23(2), pages 1-28, June.
    4. Wishon, C. & Villalobos, J.R. & Mason, N. & Flores, H. & Lujan, G., 2015. "Use of MIP for planning temporary immigrant farm labor force," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 25-33.
    5. Soto-Silva, Wladimir E. & Nadal-Roig, Esteve & González-Araya, Marcela C. & Pla-Aragones, Lluis M., 2016. "Operational research models applied to the fresh fruit supply chain," European Journal of Operational Research, Elsevier, vol. 251(2), pages 345-355.
    6. Andrew G. Clark & Susan Cholette & Ozgur Ozluk, 2011. "UCSF Increases Consumer Value Through Optimal Vendor-Show Scheduling," Interfaces, INFORMS, vol. 41(4), pages 327-337, August.
    7. Mauricio Varas & Franco Basso & Armin Lüer-Villagra & Alejandro Mac Cawley & Sergio Maturana, 2019. "Managing premium wines using an $$(s - 1,s)$$ ( s - 1 , s ) inventory policy: a heuristic solution approach," Annals of Operations Research, Springer, vol. 280(1), pages 351-376, September.

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