Improving the warehouse network of Apollo Vredestein

This bachelor's thesis is a report of the research done one the following assignment provided by Apollo Vredestein: reduce the complexity of the internal PCT flows. The core problem is identified as the lack of a general strategy for PCT stock relocations. In the first phase of this research, the context of the problem within the company is analysed. Subsequently, a literature review is presented to find similar cases within the scientific domain. As a result, it is decided that the situation of PCT stock movements at the company should be modelled as a mathematical model, so that the solving techniques can be used construct a general strategy for stock relocations. The model is first solved analytically, using the software program Aimms 4.68. Then, a heuristic approach is developed to find near-optimal solutions with reasonably low efforts. The heuristic is tested through numerical experiments. Furthermore, the heuristic approach is implemented in a ‘relocation tool’, which can be used by the company’s stakeholder to identify the stock that is most suitable for relocations, therefore providing a general strategy for stock relocations. The company implemented the tool in their decision process.