Shipment Consolidation - The Airbus Helicopter France Case
Keywords:consolidation, shipments, freight optimisation, cost savings, shipment policies
AbstractIn this paper, methods to realize cost savings for Airbus Helicopters France are considered. This company makes a lot of shipments on different origin-destination pairs. By consolidating different shipments, bigger shipments can be sent to which lower cost/kg apply. In order to schedule such consolidations when orders come in at short notice, different policies are considered and a mixed integer linear program is designed. These methods are implemented and tested on different test instances. Their performances on cost savings and running times are compared and this shows that the policies would be more practical for day-to-day use, but that the mixed integer linear program generates more cost savings when Airbus Helicopters France strictly has to meet its customer’s preferences.