Abstract

In today’s world, warehousing and distribution centres play a vital role to fulfil customer demand and requirement. Firms cannot ignore the importance of warehouse and distribution centres. In addition, firms are using DCs (distribution centres) and warehouses for valuation addition purposes such as, postponement strategies, break-bulking, consolidation, and packing and packaging etc. This research aim is to develop a model to reduce warehouse cost and increase or improved customer service. The results and discussions with personnel’s of distribution department seem to offer a lesson. It is that, though human distribution “optimizers” out of necessity, must concentrate their efforts on maintaining the most economical primary shipment transportation system, a mechanical “optimizer” like as MODS (model of optimizing distribution centres) is able to find out and determine the most economical system from the standpoint of whole the relevant costs to be considered.

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