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.

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