Management of a logistic

Management of a logistic

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Article ID: iaor20011367
Country: Portugal
Volume: 20
Issue: 1
Start Page Number: 21
End Page Number: 35
Publication Date: Jun 2000
Journal: Investigao Operacional
Authors: , ,
Keywords: simulation: applications, distribution
Abstract:

On the sequence of Portuguese liquefied petroleum gases (LPG) market liberalisation, in 1991, and the consequent increase of competitivity between LPG distributors, a change on the logistics structure of these enterprises took place. This event allowed the improvement of the distributor's supply chain, upstream to his main installation and downstream in deliveries of the product to customers. The system analysed involves many actors distributed by 5 levels. Due to the lack of product in the main depot of the operator, he has often to ration the customers' supply. Consequently, integration between supply management of operator and customers is very important to minimise the effects of the lack of product to customers and operator. To analyse the system reaction to alternative rules for customer replenishment, an operational simulation model was developed, which permits, in real time, verification of their effects on the system. It also helps make daily decisions by identifying, in accordance with each decision rule, those customers that have to be supplied and the quantity to be delivered to them. This paper addresses alternative rules to cover customer replenishment, in accordance with predetermined customer service level and operator effort.

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