An economic cost benefit analysis of internal and external warehouses in food retail industry
Author(s)Mehrotra, Vikas, 1975-
Massachusetts Institute of Technology. Engineering Systems Division.
James M. Masters.
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In today's supermarket world, consumers apart from demanding 'higher and higher quality at lower and lower prices', want more and more product choices. This has put tremendous pressure on supermarkets and their infrastructure. With better information technology, forecasting techniques, planning tools, demand fulfillment and supplier relationships supermarkets can meet the rising demand much better than ever before. But inorder to meet this demand at the lowest price they need to rethink their inbound logistics and re-optimize their warehouses. This has spurred a growth in warehousing outsourcing. The study is concerned with evaluating the cost benefit between the internal and the external warehousing for the food retail industry, while addressing the following issues: 1. Advantages and disadvantages of an internal and external warehouse. 2. Importance of alignment of logistics strategy and corporate strategy. 3. Vendor items which should be outsourced or insourced The study was conducted by evaluating the economic value for fifteen different vendors of a regional supermarket chain with the objective to help the supermarket chain reassess its warehousing strategy.
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2003.Paged continuously. Each page no. is preceded by a chapter no.Includes bibliographical references (leaves 88-89).
DepartmentMassachusetts Institute of Technology. Engineering Systems Division
Massachusetts Institute of Technology
Engineering Systems Division.