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Feasibility study for the implementation of a logistics network for distribution of dry food to low income people

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dc.contributor.advisor Yossi Sheffi. en_US
dc.contributor.author Martinez, Raimundo, 1971- en_US
dc.contributor.other Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering. en_US
dc.date.accessioned 2007-01-10T16:18:43Z
dc.date.available 2007-01-10T16:18:43Z
dc.date.copyright 2002 en_US
dc.date.issued 2002 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/35491
dc.description Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering, 2002. en_US
dc.description Includes bibliographical references (p. 69-70). en_US
dc.description.abstract This study explores the feasibility of reducing the purchasing costs of dry food by improving current logistic channels and aggregating demand. The value proposition is to reduce the purchase cost of dry food by 20% by setting up a logistic model to connect end customers with food manufacturers through a central coordination operation. This coordination unit will manage supply and demand using the Internet and a "cross-docking" system. Chile was chosen to evaluate the feasibility of a pilot project to test the model, in particular the capital city of Santiago and southern regions of the country. Results show that the proposed model is economically and technically viable if located in regional areas outside Santiago where there is a high density of low-income communities and no large chains of supermarkets. The project's return on investment is 18.5%, based on a 5-year period, a 15% discount rate, and CH$87 million of initial investment. Results of the urban model for Santiago demonstrate that it is not economically feasible due to the low-density market potential and high supermarket penetration rate. The financial model for rural areas shows that, even though transportation costs are higher than in urban Santiago, it is economically feasible and only 26 sites are required to make the project break even, representing 9% market penetration. en_US
dc.description.statementofresponsibility by Raimundo Martinez. en_US
dc.format.extent 91 p. en_US
dc.format.extent 4647436 bytes
dc.format.extent 4647246 bytes
dc.format.mimetype application/pdf
dc.format.mimetype application/pdf
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582
dc.subject Civil and Environmental Engineering. en_US
dc.title Feasibility study for the implementation of a logistics network for distribution of dry food to low income people en_US
dc.type Thesis en_US
dc.description.degree S.M. en_US
dc.contributor.department Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering. en_US
dc.identifier.oclc 50573767 en_US


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