Strategically simulating proper distribution

Companies face a complex business environment in the era of globalization, but these factors mean that there always are opportunities to implement new strategies and create value for clients and suppliers. Supply chain management can play a vital role in these opportunities because it encompasses ma...

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Bibliographic Details
Published inIndustrial Management Vol. 55; no. 4; p. 22
Main Authors Contreras, Homero H, Nuño, Pablo, Porras, Eric, Zelaya, Eduardo
Format Trade Publication Article
LanguageEnglish
Published Norcross Institute of Industrial and Systems Engineers (IISE) 01.07.2013
Subjects
Cost reduction
Decision making
Developing countries
Distribution
Distribution costs
Drug stores
Executives
Franchisees
Franchises
Generic drugs
Generic products
Globalization
Inventory
LDCs
Pharmaceutical industry
Simulation
Suppliers
Supply chain management
United States > US
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Summary:Companies face a complex business environment in the era of globalization, but these factors mean that there always are opportunities to implement new strategies and create value for clients and suppliers. Supply chain management can play a vital role in these opportunities because it encompasses many parts and subsystems, such as inventory, the distribution network and manufacturing, and provides the way to link suppliers with their final clients. A distribution network is a complex system that embraces a lot of operations linked by mathematical calculations and stochastic behavior; in particular, the integration of all the activities within a distribution network provides opportunities to create value, reduce costs, raise productivity and maximize profit models. Using a simulation model provided insights about the distribution network and allowed the integration of stochastic conditions occurring in the real operation of the network. Furthermore, the design of the model, based on the input-data matrix, boosted the design and evaluation of the scenarios.
ISSN:0019-8471