Optimization of Transport, Storage and Allocation of Production at Norra Timber

Abstract: Optimization is a method that is, as the name suggests, used to find the    optimal solution for different problems. In practice the method is used for    many different purposes, everything from minimizing the distance traveled by a traveling salesman, to maximizing the storage capacity of a warehouse. The purpose of this project was to develop a tool that, through the use of optimization finds a solution to production and transporting problem of the logistics at Norra Timber. To achieve this, a series of functions were written in MATLAB that read data files from the user. The functions then use that data to define and solve the production and transportation problem proposed by Norra Timber using a built in solver from the optimization toolbox in MATLAB. When the program has found a solution, it is exported into a series of Excel spreadsheets to make the results easier to read. The method was found to be successful in finding the optimal solution for all the different scenarios that were tested. In total, five different scenarios were tested. One baseline test and four scenarios where each one was built upon the scenario before it. At the end of the final scenario, the total cost of the production was reduced by approximately 1.15%, compared to the baseline test, which matched the expected cost reduction. In conclusion, the tool fulfills the requirements of functionality. It is efficient at testing different scenarios and finding the optimal solution. However, the tool does have minor inconveniences that can be improved upon. While they can be detrimental to the user experience, they do not affect the results.