Abstract
The purpose of this paper is to minimize products' distribution costs for a multinational company located in Brazil, observing the different ICMS tax structures. This research was about a metallurgical industry company, and delivers its products through an outsourced company for interstate highway transportation. In this case study, a transshipment model was developed for determining if some distribution centers (DCs) are going to be used or not, because, despite of a greater distance, increasing freight cost, the state benefits for ICMS tax could decrease total cost. Study results suggest that using some DCs may help decrease total distribution cost because of ICMS tax impact. It also suggests that the distribution of imported products is cheaper than the national ones, without considering its purchase and fabrication costs. The proposed approach can help Brazilian or multinational companies to support logistic decisions, which could be useful given the Brazilian transportation context.
Highlights
RESUMO Foi realizado um estudo de caso sobre uma empresa multinacional localizada no Brasil, da indústria metalúrgica, que terceiriza a entrega de seus produtos aos clientes por meio de uma empresa de transporte rodoviário
The objective of this paper is to minimize products' distribution costs for a multinational company located in Brazil, observing the different ICMS tax structures
The objective of this paper was to minimize products' distribution costs for a multinational company located in Brazil, observing the different ICMS tax structures
Summary
In Brazil, there is a tax called ICMS (tax on the movement of goods and services), instituted by the Brazilian Federal Constitution, that implies on interstate exchanges of goods and transportation service. Its factory is located at the State of Rio de Janeiro and the company has DCs in others Brazilian states This company employs more than 1300 employees and has private and public clients around the world. The objective of this paper is to minimize products' distribution costs for a multinational company located in Brazil, observing the different ICMS tax structures. To achieve this objective, a transshipment problem was modeled, a variation of the transportation problem in linear programming, given its usability to solve this type of problem when there are constraints on supply and demand. RASI, Volta Redonda/RJ, v. 5, n. 3, pp. 05-17, set./dez. 2019
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