Title: Modelling the transportation and warehousing of potassium chloride in the fertiliser industry

Authors: Miguel C. Santoro, Debora P. Ronconi

Addresses: Department of Production Engineering, EPUSP, University of Sao Paulo, Av. Prof. Almeida Prado, 128, 05508-900, Sao Paulo SP, Brazil. ' Department of Production Engineering, EPUSP, University of Sao Paulo, Av. Prof. Almeida Prado, 128, 05508-900, Sao Paulo SP, Brazil

Abstract: This study describes the Mixed Integer Linear Programming (MILP) model developed for a Brazilian company CVRD that manages the only active producing unit of potassium chloride in Brazil. The extraction of potassium chloride is characterised by a constant level and a seasonal demand, since it is an agricultural input. In this study, a dynamic multiperiod model was developed for warehousing planning and distribution. The application of this model helped in the decision-making process of establishing new warehousing systems. Possible gains that can be obtained in the negotiation of delivery dates and sales prices are also analysed.

Keywords: physical distribution; warehouse locations; MILP; mixed integer linear programming; freight transportation; warehousing planning; potassium chloride; fertiliser industry; Brazil; Companhia Vale do Rio Doce; CVRD; constant levels; seasonal demands; agricultural inputs; agriculture; farming; multiperiod models; decision making; delivery dates; sales prices; logistics systems; logistics management.

DOI: 10.1504/IJLSM.2011.038989

International Journal of Logistics Systems and Management, 2011 Vol.8 No.3, pp.298 - 312

Published online: 30 Apr 2015 *

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