A cost optimisation strategy for a single warehouse multi-distributor vehicle routing system in stochastic scenario. Issue 1 (1st January 2011)

• Record Type: Journal Article
• Authors: Nidhi, M.B.; Anil, B.
• Is Part Of: International journal of logistics systems and management. Volume 10:Issue 1(2011)
• Page Start: 110
• Page End: 121
• Publication Date: 2011-01-01
• Subjects: logistics -- multimodal logistics -- supply chain management -- optimisation -- scenario planning -- simulation and modelling; Business logistics -- Periodicals; 658.5005
• Languages: English
• ISSNs: 1742-7967

Abstract

The delivery stage is the most expensive phase in supply chain and logistics management. In this work a simulation model is developed to seek cost optimisation in a single warehouse multi distributor system in stochastic environment. An LPG bottling and distribution plant is taken as a case study. Performance measures which account for quantifiable and non-quantifiable cost factors are employed for evaluation. A dispatch rule based allocation is proposed in place of random method presently followed. The model is implemented using Matlab.7.0.1. The results indicated 33% reduction in resource requirement pointing towards a superior strategy for cost optimisation.