Title: A cost optimisation strategy for a single warehouse multi-distributor vehicle routing system in stochastic scenario

Authors: M.B. Nidhi, B. Anil

Addresses: Department of Mechanical Engineering, Mar Baselios College of Engineering and Technology, Trivandrum 695015, Kerala, India. ' Department of Mechanical Engineering, College of Engineering, Trivandrum 695016, India

Abstract: The delivery stage is the most expensive phase in supply chain and logistics management. In this work a simulation model is developed to seek cost optimisation in a single warehouse multi distributor system in stochastic environment. An LPG bottling and distribution plant is taken as a case study. Performance measures which account for quantifiable and non-quantifiable cost factors are employed for evaluation. A dispatch rule based allocation is proposed in place of random method presently followed. The model is implemented using Matlab.7.0.1. The results indicated 33% reduction in resource requirement pointing towards a superior strategy for cost optimisation.

Keywords: multimodal logistics; supply chain management; SCM; cost optimisation; scenario planning; simulation; modelling; single warehouses; multi distributors; vehicle routing systems; stochastic environments; liquefied petroleum gas; LPG; delivery stage; bottling plants; distribution plants; performance measures; quantifiable costs; non-quantifiable costs; cost factors; dispatch rules; rule based allocations; random methods; MATLAB; matrix laboratory; resource requirements; resource reduction; depots; logistics systems; logistics management.

DOI: 10.1504/IJLSM.2011.042056

International Journal of Logistics Systems and Management, 2011 Vol.10 No.1, pp.110 - 121

Published online: 06 May 2015 *

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