- Location models:- These models help in planning the optimal location of plant or warehouses, considering the inbound and outbound transportation costs and infrastructure cost at the locations.
- Allocation models:- These models help in optimally allocating commodities from sources to destinations in a multiple sources, multi destination environment. The costs consider for optimization are the production cost, transportation cost and warehousing.
- Distribution network design models:- These models are usually comprehensive in nature deciding between a two, three or even four stage distribution network, location of warehouses and break bulk points and sometimes even the transport mode choice.
- Inventory models:- Inventory models play a key role in Logistics Management. The inventories that are directly affected due to outbound logistics are
- Finished Goods Inventory
- Pipeline Inventory
- Warehousing Inventory
- Retail Inventory
The typical cost trade-offs between inventory and other decisions in Logistics would be
- Inventory vs Transportation Costs
- Inventory vs Stock out Costs
- Inventory vs Spoilage and Materials Handling Costs
- Routing models:- These models allow optimal routing on a transportation network from a given source to a destination. The simplest model is scales the Shortest Path Problem.
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