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On the application of a transportation model for revenue optimization in waste management: a case study

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Abstract

This paper describes an interactive decision support system called Opti-Link which has been developed for a company operating in the area of waste and raw material management. Built around a specific transportation problem, the system is used to maximize the revenue generated by selling waste paper to paper mills. Furthermore, the dual variables of the linear program allow the planner to identify upper bounds for setting bid prices to buy waste paper from waste collection companies. First operational results indicate a significant increase in profit while at the same time the duration of the planning process could be cut by more than half.

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References

  • Dantzig GB (1951) Application of the simplex method to a transportation problem. In: Koopmans TC(eds) Activity analysis of production and allocation. Wiley, New York, pp 359–373

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  • Derigs U, Friederichs S (2008) “Decisions Everywhere”—supporting mobile and real-time pricing in waste trading. Working paper. Department of Information Systems and Operations Research, University of Cologne

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Authors and Affiliations

  1. Department of Information Systems and Operations Research (WINFORS), University of Cologne, Pohligstr. 1, 50969, Cologne, Germany

    Ulrich Derigs & Stefan Friederichs

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  1. Ulrich Derigs
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  2. Stefan Friederichs
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Correspondence to Ulrich Derigs.

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Derigs, U., Friederichs, S. On the application of a transportation model for revenue optimization in waste management: a case study. Cent Eur J Oper Res 17, 81–93 (2009). https://doi.org/10.1007/s10100-008-0058-y

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  • DOI: https://doi.org/10.1007/s10100-008-0058-y

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