Abstract
Purpose of the paper: The present paper focuses on one of the most important issues in supply chain research: supply chain configuration and optimisation. The aim of this study is to propose a logistics network optimisation model, together with a series of methodological guidelines for obtaining and processing the necessary data, able to deal with real life supply chains problems and to manage a degree of complexity typical of a factual company environment. Methodology: After an extensive review of the literature on linear programming models for supply chain configuration and optimisation (170 reviewed papers), we developed a mixed-integer linear programming model along with a data mapping scheme and, subsequently, we applied them to a real-life case study, i.e. the European Pirelli Tyre logistics network. Findings: Based on the comparison of the outcomes of the model with budgetary data for the as-is logistics network configuration, the proposed model proved to be accurate and adherent to the actual figures of the considered company. We then solved the optimisation problem, obtaining significant results in terms of savings compared to the as-is situation. Research implications: This paper significantly contributes to the growing debate on the adoption of models and decision support tools for designing and optimising supply chains and logistics networks. Practical implications: By means of this study, we provide supply chain managers with a decision support tool for optimising the configuration of international logistics networks, able to keep into consideration real-life issues, complexity and constraints. Moreover, the enclosed methodological guidelines drive users in the complex, difficult and time-consuming data gathering and processing activities. Originality: Our extensive review showed that previous literature is particularly wanting of exhaustive supply chain design and optimisation models, dealing with real-life complexity, practically implemented in realistic contexts and integrated with a data gathering and processing section as well. For this reason, the originality of our proposed approach is represented by the possibility to fill the gaps in the current state of the art, by means of an integrated design and optimisation model, practically applicable by companies.