Applying Simulation Modelling in Quantifying Optimization Results

Improvements achieved by applying linear programming models in solving optimization problems in logistics cannot always be expressed by physically measurable values (dimensions), but in non-dimensional values. Therefore, it may be difficult to present the actual benefits of the improvements to the stake holders of the system being optimized. In this article, a possibility of applying simulation modelling in quantifying results of optimizing cross dock terminal gates allocation is outlined. Optimal solution is obtained on the linear programming model by using MS Excel spreadsheet optimizer, while the results are quantified on the simulation model, by using Rockwell Automation simulation software. Input data are collected from a freight forwarding company in Zagreb, specialized in groupage transport (Less Than Truckload - LTL).

Automated summary

The use of linear programming models in logistics optimization may not always result in physically measurable improvements, but rather in non-dimensional values. This can make it challenging to showcase the actual benefits to stakeholders. The article suggests the use of simulation modeling to quantify the results of optimizing cross dock terminal gates allocation.