Highlights
Abstract:
Distribution system is a branch field from supply chain management which has generated much interest in recent years. They are inherent monopolies and therefore they have generally been regulated to protect customers and to ensure cost-effective operation. In the modern world, the management science is playing a major role in every company and organization and the right management decisions can make a significant difference between the competitors. In addition, supply chain management is the knowledge that applied to design or optimize the flowing of goods or services for the most benefit out of the process by decreasing the time of the process, increase the efficiency of the process, etc. Many organizations are suffering from the wrong optimization, or design for their supply chain, and every organization check and apply changes if needed to its supply chain design. Roy is a distributor for a juice and water who face some obstacles regarding delivering of his products to pre-sell accounts customers on time without delaying their orders This paper is going to show how he has managed the supply chain distribution for his company and what are the mistakes that occurred in the distribution plan, what is its impact on the distribution process in regard to spent time and the total cost. It will also show how to optimize the distribution design for the company using the sweep method and changing multiple factors in the distribution elements to reach to the best optimization possible and giving the recommendations regarding that distribution plan.
Keywords:
Supply chain management, cost-effective operation, sweep method
Problem Statement:
Fowler Distributing Company provides an analysis of the current distribution network. The purpose of the assignment is to investigate the current routes designed to formulate proposals or optimize new designs that will contribute to reductions in the amount of cost of the current design. The optimization solution has given a methodology of how to optimize the number of tracks, trucks capacity, and satisfy the customer time window. In the First scenario, the current routes are of Fowler’s trucks are used and optimized to meet customers’ requirements. In the second scenario, using the current trucks or larger capacity trucks to minimize total cost. In the third scenario, the impact of the customer variables, stop sequence for the trucks, truck capacities, and time windows are analyzed to determine their impact on total costs.
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