The Cost Driven Production And Distribution Network Redesign For Bronte Plc

2514 WordsMar 27, 201611 Pages
Introduction This report focuses on providing cost driven production and distribution network redesign for Bronte PLC. In this report, the cost, transport distance and CO2 emission of Bronte PLC’s original distribution network will be calculated. And the original distribution network will be taken as the base case for later on comparison. After that, this report will introduce 5 different future distribution network redesign scenarios based on changing the depots’ function and location, and different mode of transport, which will be followed by a qualitative analysis focusing on cost, distance and CO2 emission. At last, a final recommendation for Bronte PLC will be introduced. Base case Base case model In the base case, several assumptions has been decided in order to achieve realistic and to facilitate the calculation. First, chocolate and gift can be mix loaded during shipping and trunking, but cannot be mix loaded during local delivery. Second, one TEU has the capacity of 11 pallets of products and one trunking vehicle has the capacity of 26 pallets of products. Third, this report assumes that all the local delivery are full loaded, which makes that the local delivery amount and frequency are fixed for each individual customers. And the basic information is listed in table 1. Table 1. With the given information on demand, location, product type, and matched service relationship between depots and individual customers, 6 basic costs has been calculated, including:

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