Shipment consolidation optimization of hazardous and perishable chemical materials procured from a single supplier: An application at Turkish Aerospace

This thesis covers research and studies of the consolidation of the shipments of chemical and shelf-life materials supplied from a manufacturer in the supply chain of Turkish Aerospace (TA) operating in the aerospace and defense industry. Chemical materials are mostly a group of materials that have a shelf life and must be consumed within a certain period, otherwise they will be scrapped. In addition, some chemical materials may also be classified as hazardous materials. shipments of dangerous materials must be made under special conditions in response to a possible emergency risk. We first analyzed and defined the problem under real-life conditions so that shipment consolidation could be carried out. We have underlined the important points that should be considered while consolidating shipments. After a literature search, we developed a mathematical model to solve our problem and obtained a solution using real transportation and Purchase Order (PO) data. According to the case studies conducted, we achieved an improvement in the range of 63% to 70% in the shipments of chemical and shelf-life materials procured from the supplier.