Applying an integrated logistics network design and optimisation model: the Pirelli Tyre case

Abstract

The aim of the present paper is to provide an application to a real-life supply-chain context (i.e. the Pirelli Tyre European logistics network) of an integrated logistics network design and optimisation model. Starting from the analysis of supply chain under study and of the configuration problem to be solved, we identified the most suitable approach: a mixed integer linear programming optimisation model endowed with a series of guidelines for gathering and processing all the data necessary to set-up and run the model. The application of the selected integrated design and optimisation model to the Pirelli Tyre case led to significant cost savings related to three different service-level scenarios. Thus, the applied model could be profitably implemented by supply chain and logistics managers for optimising various operating contexts. Moreover, the exemplified data-mapping section represents a useful guideline, which can be applied by practitioners to gather and handle the high volume of data necessary for running the model in a real-life context. In conclusion, since the current state of the art is particularly lacking exhaustive supply-chain design models, the implemented integrated approach represents a significant contribution to the existing body of knowledge on supply chain configuration.

Keywords:

• supply-chain design
• spreadsheet programs
• linear programming
• data mapping

Acknowledgements

We would like to express our gratitude to the reviewers for their valuable contribution in enhancing the quality of the present paper and to our native-English-speaking proofreader for supporting us in refining the writing style of the paper.