Distribution networks consolidation and optimization for a large industrial conglomerate
Name
700941856-MIT.pdf
Description
Full printable version
Size
6.21 MB
Format
Adobe PDF
Checksum (MD5)
e7bcfb4008b44f7050522aab96fd5fe3
Author(s)
Sridurongkatum, Phol
Advisor(s)
Bruce Arntzen.
Alternative Title
Distribution network consolidation and optimization for a large industrial conglomerate
Date Issued
2010
Publisher
Massachusetts Institute of Technology
Abstract
Redesigning the distribution networks for the company's various supply chains to lower the cost of delivering products to customers is crucial to company's competitiveness. Redesign includes changing warehouse locations for a specific product to be closer to customers and warehouse consolidation, which requires sharing warehouse space by more than one product type and closing some existing warehouses that are not cost efficient to operate. The objective of this project is to develop a decision tool to help an industrial conglomerate makes decisions related to the redesign its distribution networks. The data collection was done through collaboration with company's representatives. A Mixed Integer Linear Programming (MILP) model was developed as a tool to solve the optimization problem, which involves moving 9 product types from 21 manufacturing plants, through 22 warehouses, and to 26 destination zones,. The results from the model provides a useful information for the company about which warehouses should be retained, which warehouses should be closed, and what would be the new distribution networks, in order to minimize total distribution costs while still satisfy the customers' demand.
Description
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2010.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 69).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
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