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Optimization Tools for Logistics

 Operational research (OR) is one of the focus areas in supply chain management that is
sometimes neglected as it is perceived to be highly mathematical with maybe relatively little
practical use. This perception is obviously not correct and the Optimization Tools for Logistics
provides an interesting practical overview of the main problems encountered in operational

                 research, such as optimisation of transport routing and scheduling.

  title:			                           The approach in Optimization Tools            The author attempts to define
                                      for Logistics is from a theoretical       logistics in the introduction and
    Optimization Tools for Logistics  perspective with some detail on           discusses the historical relevance and
                                      fundamental mathematics necessary         application of logistics in the military
  author:		                           to understand the solutions, as           environment. This is followed with
                                      well as some practical examples of        brief reference to the development
    Jean-Michel Réveillac             information technology tools such as      of operational research and how that
                                      spreadsheets, project managers or flow    brought the use of mathematics and
  publisher:		                        simulators and exercises that include     calculations with consideration of
                                      the solutions.                            certain constraints, into the realities of
    Elsevier                                                                    military deployment.
                                          Having noted that, it is important
  edition:		                          to be aware at the start that this            Computer science followed as
                                      book is not easy reading for a late       computing power in the form of
    2015                              afternoon, but technical content that     mainframe and desktop computers
    isbn                              should preferably be consumed when        were rapidly introduced and planning
    978-1-78548-049-2                 wide-awake. A minimum level of            and scheduling techniques such as
                                      mathematical knowledge is required        Program Evaluation and Review
  pages:		                            and some undergraduate exposure to        Technique (PERT), Metra Potential
                                      mathematics, science or economics         Method (MPM) and Critical Path
    439-page hardcover                will be a prerequisite to extract the     Method (CPM) emerged. Subsequently,
                                      most value from the book. Visual          Manufacturing Resource Planning
  price:			                           basic applications and database           (MRP), Just-in-Time (JIT) and quality
                                      management are presented and a good       standards such as ISO 9000 were
    US$140.25 at                      working knowledge of spreadsheets is      developed and management started
    www.store.elsevier.com            also needed.                              recognising the importance of
                                                                                implementing logistics strategy to
  reviewed by:	                           The target audience includes          maintain their competitive edge.
                                      according to the author “anyone
    Gerard de Villiers                facing logistical problems related to         Enterprise resource planning (ERP)
    gerard.devilliers@arup.com        flow management, decision-making,         followed and paved the way for
                                      route or round optimisation, meeting      integrating distribution, e-commerce
14 May 2016 • Logistics News          an objective when faced with multiple     and other logistics functions into
                                      constraints, the creation of dashboards   supply chain management. The author
                                      and relevant simulations”.                is of the opinion that ERP has reached
                                                                                its limits in recent years due to inter
                                          The book is divided into two parts    alia the high cost of implementation
                                      with the first eight chapters discussing  and long installation and integration
                                      theory, and the next five chapters        time. At the same time, other tools such
                                      devoted to calculating different          as customer relationship management
                                      exercises with the use of different       (CRM), warehouse management
                                      software. More information on             systems (WMS) and simulation
                                      installing a solver in Microsoft Excel    emerged, and this is where the content
                                      and the standard normal distribution      of this book fits and provides a useful
                                      table are presented in appendices         contribution.
                                      with a very useful glossary that covers
                                      most important acronyms, terms                The first chapter explains the fields
                                      and concepts. The book ends with          of application, principles and concepts
                                      a bibliography that includes useful       of operational research (OR) as well as
                                      websites as well as the usual index.      the importance of identification of
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