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Cutting logistics Costs with an Optimal distribution with Balancing approach and Cost minimization: A Case Study Model in one Producer-multiple Warehouses Condition in Supply chain management

Author Affiliations

  • 1Department of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, IRAN

Res. J. Recent Sci., Volume 4, Issue (7), Pages 119-129, July,2 (2015)

Abstract

Logistics as a part of supply chainis a process of creating value through scheduling and stock locating. Increasing competitive conditions in the market of goods and services supply and main advancements of communicative and IT industries have caused suppliers, producers and distributors to focus highly on logistics systems to decrease costs and improve customers’ services (providing the product in the right time and place for the customer). To this end, internal and external logistics costs (products` final distribution) and total cost in logistics system is a key factor to improve management performance. In the present study, it has been attempted to decrease total transport cost by selecting the appropriate capacity of transportation. Then, forkliftare optimally allocated to each department based on measured time per minute to do transport operations related to a transport cycle through each forklift in each department at assembly saloon. Afterwards, the most optimal transport channel of ingredient is determined by each forklift from two existing warehouses to assembly saloon using TOPSIS ranking method. Finally, the total expected distribution cost consisting the model`s target function is minimized using an optimal distribution model in one producer-multiple warehouses condition.

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