Sponsor:

Missouri Dept of Transportation

Research Team:

Mustafa Sir, James S. Noble, Wooseung Jang, Roger Nagel, Patrick Schmid

Universities Involved:

University of Missouri

Start Date:

03/01/11

End Date:

09/30/11

Summary:

The objective of this project is to develop an optimization-based approach to increase efficiencies in the sign distribution network of the Missouri Department of Transportation through comprehensive examination of warehouse and delivery locations, inventory volumes, and transportation logistics. We developed integrated methodologies to assist MoDOT in formulating cost-effective sign distribution system design and operations strategies.
The objective of this project was to develop an optimization-based approach to increase efficiencies in the sign distribution network of the Missouri Department of Transportation through comprehensive examination of warehouse and delivery locations, inventory volumes, and transportation logistics. We developed integrated methodologies to assist MoDOT in formulating cost-effective sign distribution system design and operations strategies.

The overall project objective was obtained via the following sub-objectives:

1. Identification of several realistic scenarios as alternatives to MoDOT’s current sign distribution network, which consists of a statewide sign production center located in Jefferson City, one warehouse in each of the ten MoDOT districts, and several delivery locations in each district. Other scenarios were identified based on a combination of the following:

a. Warehouse consolidation.

b. Assignment of delivery locations to warehouses after consolidation.

c. Distribution strategy from sign production center to warehouses.

d. Outsourcing production of standard signs.

2. A four-step approach for evaluating the scenarios identified was developed with regard to several performance measures including but not limited to overall inventory holding, production setup, and transportation costs, the average number of stockouts per unit time, and the average delay in filling backorders when a stockout occurs. The four steps are as follows:

a. Determining optimal order quantities for each stock sign type at each inventory location.

b. Determining reorder points for each stock sign type at each inventory location.

c. Determining optimal transportation strategy for the entire sign distribution network.

d. Development of a data-driven network simulation model to estimate performance of each scenario.

The success of this project will lead directly to improved MoDOT Tracker performance for “Number of innovative solutions implemented for maintenance operations-8e”. This will be the result of developing an efficient overall sign production and logistics approach that will reduce overall cost and improve daily operations.