APPLICATION OF MIXED INTEGER LINEAR PROGRAMMING MODEL IN OPTIMIZING THE EXPORT WOOD TRANSPORTATION NETWORK FOR SMALL AND MEDIUM ENTERPRISES IN HANOI

Abstract

This study builds upon and develops the Mixed Integer Linear Programming (MILP) model for multi-objective transportation network optimization, aiming to evaluate the practical applicability in the wood export activities of small and medium-sized enterprises (SMEs) in the Hanoi area. The input data includes the locations of production facilities, collection points, export ports, consumption markets, transportation cost-time matrices, and storage limits based on the characteristics of wood products. The model is solved using CPLEX software with three scenarios: (1) cost optimization, (2) time optimization, and (3) multi-objective optimization. The results show a clear trade-off between transportation cost and time. Specifically, with a weight range of 0.6 to 0.75, the composite index Q achieves a low and stable value, indicating a reasonable balance between the two objectives. The model demonstrates high potential for application in designing logistics networks suitable for the scale, business strategy, and practical conditions of SMEs in the wood export sector.