ENHANCED MANUFACTURING INDUSTRY SUPPLY CHAIN DISTRIBUTION NETWORK THROUGH TRANSPORTATION MODELLING

This paper examined the physical distribution of finished product of a soap manufacturing company, with a view to improving its outbound logistics operations. This was achieved through a mathematical modelling of the company's product distribution. The proposed model established cheapest method...

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Bibliographic Details
Published inThe International Journal of Transport & Logistics Vol. 18; no. 44; pp. 15 - 27
Main Authors Diugwu, Ikechukwu A, Nwaogbe, Obioma R, Pius, Abraham, Omoke, Victor
Format Journal Article
LanguageEnglish
Published Kosice University of Belgrade, Faculty of Mining and Geology 01.01.2018
Subjects
Approximation method
Customers
Decision making
Distribution costs
Distribution management
Economic growth
Engineering research
Event-related potentials
Infrastructure
Logistics
Manufacturing
Manufacturing industry
Mathematical models
Operations research
Optimization
Production planning
Raw materials
Shipping
Shipping industry
Supply chain management
Supply chains
Transportation
Transportation services
Warehouses
Aba Nigeria
United States > US
Nigeria
Kenya
New Jersey
India
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Summary:This paper examined the physical distribution of finished product of a soap manufacturing company, with a view to improving its outbound logistics operations. This was achieved through a mathematical modelling of the company's product distribution. The proposed model established cheapest methods of transporting goods from various warehouses of the company to their various customers (destinations). The resulting solution using the Vogel Approximation Method (VAM), showed that the company could save about one million, nine hundred and forty thousand, and eighty naira (N1,940,080.00) only from its transportation/product distribution cost if the company could adopt the suggested shipping arrangement. On the basis of the result achieved, it is envisaged that the integration of operation research techniques (such as optimization, transportation and logistics planning, production planning) in the decision-making process of company would minimise the occurrence of surpluses and associated costs, as well as the tendency to transfer these costs to consumers. The adoption of similar measures within the manufacturing industry sector would improve the contribution of the industry to the economy of the nation.
ISSN:1451-107X
2406-1069