The Multi Location And Multi Period Transshipment Problem

They are well within reach of ‘closing the loop’ by making full use of their competitive advantages through effective information flows, physical flows and reducing monetary costs. 2. What risks does a retailer aiming for this level of responsiveness face? a. Threat of Duplicity3: Noticing the efficiency and effectiveness of the present operations and supply chain system, a lot of competitive players will try to replicate this system. However, in the case of 7-Eleven, it becomes extremely difficult to do so because the information system in the form of the Graphic order terminals for placing orders linked to the store computer, scanner terminals to scan deliveries from the distribution center, store computers that link to the ISDN network and the POS registers linked to the store computer cost huge sums of money. This along with the sophisticated system of combined distribution forms a reasonable barrier against the threat of new entrants. b. Relationship management: Maintaining solid relationships for retailers with the actors both upstream and downstream of the supply chain is essential like in the case of 7-Eleven stores. As can be seen from the case, none of these DCs carry any inventory but merely transfer inventory from supplier trucks to Seven-Eleven distribution trucks. These items are delivered from a total of 152 companies and 201 plants. The transportation is provided by Transfleet Ltd., for the exclusive use of Seven-Eleven

Product recovery operations in reverse supply chains are already faced with the challenging problem of adapting their capacity in an effort to increase supply chain profitability related to recovery activities, while dealing with the confines of continuously evolving EPR legislation (Vlachos et al, 2007). Capacity planning is thus becoming even more complex and critical for reverse supply chains. Therefore, a company needs an efficient capacity planning measure to improve economic and environmental performance of its reverse supply chains. However, capacity planning of reverse supply chains is an extremely complex issue, since each time a company considers expanding or contracting collection, sorting and reprocessing capacity, it must consider a myriad of possibilities. Even after the decisions to expand or contract capacity is given, it remains to resolve key issues such as when, where and how much, and all these under the two main competing objectives in capacity planning which are 1) maximization of market share and 2) maximization of capacity utilization. Furthermore, specific external factors affecting capacity stability have to be incorporated into capacity planning. Such factors include uncertainties in product usage and residence time, quantity, timing and quality of end-of-life products, EPR obligations and penalties, and so on (Georgiadis et al., 2006).

Jacobs, F. R., & Chase, R. (2011). Operations and supply management (13th ed.). Boston, MA: McGraw-Hill Irwin

Shipping was done only in full trucks. No rules were there to determine optimal truck loads. Random decisions were taken due to poor visibility in the network. Monthly sales in first 20 day were around 16-32% and last 10 day was around 53%. As a result extra space was hired in case shipment exceeded depot capacity incurring more cost. Some placed extra inventory were getting accumulate and at the same time stock out were happening in some other place.

The underlying factors in the traditional approach of order fulfillment had a direct impact on manufactures and retailers in the form of thinning margins. Thus, to address these factors an alternative approach of product delivery was crucial and also to take costs out of distribution channel without compromising service. This was introduced by Brando Vitali’s JITD (Just-In-Time-Distribution) proposal, which focused solely on dry products to be sold through distributors. This approach was also expected to radically change the way in which Barilla’s logistics managed product delivery with JITD bringing in its two key concepts of: replacing sequential optimization with global optimization and eliminating some of the “false” economies that drive traditional ordering processes.

From week 17 to week 25 the purchase orders are decreasing concomitant with the increase of customer’s orders, and this will have negative consequence on the inventory. The stock is decreasing rapidly, and thus, by the end of week 44 the Retailer cannot fulfil customer’s orders.

Transhipment is defined as transfer of a shipment from one port to other port. During the delivery, the cargos stop at the third countries to doing packaging, labelling, asembly and so on value added services activity. After finished value added services, the

He made the decision for MTS or MTO for each item with a model using a zero-one variable. The minimizing of inventory cost of MTS things while guaranteeing that requests for the satisfied MTO items are the objective. It was a hard mixed-integer nonlinear program, a heuristic solution procedure was presented with and without congestion effects to ensure that MTO system may be consumer down cost yet had a higher inconstancy. Some computational study was made to estimate the heuristic performance relative to the lower bound and found that the decision depended not only on the items demand but also on its unit holding cost, its time of processing and setup time. An item with higher per-unit holding cost are more such to be MTO and items with higher setup times are more such to be MTS.

In his book "It 's Not Luck", Goldratt proposed the application of concepts and methods of the theory of constraints (TOC) on a supply chain. The theory put forward is a win-win solution mainly for the conflicts that occur in the inventory management area of a supply chain (Goldratt, Cox et al. 2012).This paper presents the application of Theory of constraints’ replenishment solution on a distribution network to ensure better performance of the supply chain. The TOC necessitates optimum stock allotment for all distributors and retailers within the distribution chain. The limitations are dealt with using the concept known as the automatic replenishment method (Cyplik P., Hadas Lukasz, Domanski R., 2009).

Air transportation is costly, but fast and reliable. Other modes of transportation may be cheaper, but the sacrifice has to hold inventories due to delays that may occur. If the above decisions are made with careful and strategic thought as well as with concern for integration, the supply chain should be efficient and successful.

The study’s fundamental practical contribution is solving the real-world problem presented, allowing an improved supply chain through one of its two main activities, the logistics, by combining strategic and tactical decisions. The real-world problem is the partitioning of customers into certain groups and planning visits to these customers over a given time horizon (strategic decisions) and the construction of efficient routes by which to visit the customers (tactical decisions). Theoretically, this problem contains the

Inventory handling is very crucial as per the physical distribution management is concerned. This is because it has direct influence to satisfaction of customers. Inventory levels are said to a function of market type within which the company operates. Therefore companies should not run out of inventory so as to maintain their customer base. Transport is the influence of distribution cost. Therefore the chosen mode of transport should be at apposition of protecting the goods from damage thus not endangering the future of the business. In reference to the article regarding the distribution centers, several retailers like the Tesco & Sainsbury have diverted all their warehousing to various logistic companies to offer transportation services. In an economic point of view, marginal cost (MC) is equal to marginal revenue (MR), (Acemoglu, 2012). This statement also applies to marginal marketing expense (MME) equals to marginal marketing response (MMR). This will only occur when there is an increment in the service levels. In conclusion, the knowledge of physical distribution is only essential to purchasers and work study management can be related to PDM since it entails accuracy and efficiency. On the other hand, logistic structure should not be nonflexible but can be

International transportation elements of supply chains are shortened and distance driven costs are lower because supply sources are relocating closer to consumers (Russell et al., 2014). With near sourcing, from places like the United States, Latin America, and the Caribbean, offers advantages. For example, with imports coming in from Latin America and the Caribbean through the U.S East Coast ports, shippers not only avoid the congestions on the West Coast entry ports, they are able to bypass cross country movement that are expensive from West Coast ports to populated distribution centers in the east (Russell et al., 2014). Business can quickly adjust freight movements to change at the request of customers’ demands, by means of shortened distance and lower risk of congestion and delays (Russell et al.,

When it comes to needs of transportation, the companies need first look at their inventory management and see what the best fit for their transportation needs is. This paper is a review of Multi-echelon Inventory Control with Integrated Shipment Decisions by Olof Stenius. In a three-part study conducted at the division of Production Management in the Department of Industrial Management and Logistics, at Lund University, the researchers put together three scenarios on how inventory management helped guide decision making on the use of intermodal transportation versus single mode transportation. The studies, titled Sustainable Multi-echelon Inventory Control with

Transportation Problem involves distribution of a certain commodity from several origins to a number of destinations. The aim in the whole process is to minimize the costs involved.