The Optimization of Reservoir Based on the Combination of ABC Classification Method and Linear Programming Method

Li Fangping,Yang Yuguo,Wu Yue

doi:10.5539/ijbm.v11n11p156

Abstract

With the optimization objective of all the goods’ delivery time, this article presents reasonable storage optimum proposal through analysis of the order data of an enterprise warehouse. Firstly, establish a mathematical model by linear programming method in order to get an ideal and accurate storage program and secondly on this basis, combine practical storage location to reach final storage program by optimizing storage location reached by ABC classification method.

Highlights

Classification criteria of ABC classification method is too single, it is based on the number of funds accounted for the number of items to classify without considering the difficulty of purchasing, procurement lead time, the monopoly, production dependence and other factors
Linear programming is an important branch of operations research featured by studying earlier, faster development, widely used method is more mature
It is a mathematical method to assist people to manage scientifically, which provides a scientific basis for reasonably using of limited human, material and financial resources, etc. to make the optimal decision

Summary

Introductory Remarks

ABC classification method, known as Pareto classification method, its core idea is to draw a clear distinction between the primary and the secondary, to identify the key minority factors determining an object as well as the subordinate but majority factors, that is the key minority and average majority, and is 80/20 rule as mentioned. Classification criteria of ABC classification method is too single, it is based on the number of funds accounted for the number of items to classify without considering the difficulty of purchasing, procurement lead time, the monopoly, production dependence and other factors. That is why it has a certain one-sided. Many practical problems are abstracted as mathematical models, which can be classified as solving linear programming problems, so there is a strong practical application of linear programming problems It can provide the optimal solution for the allocation of production and other operating ranges

Determine the Optimization Objectives

E Goods5

Determine Layout Optimization Principles

Conclusion