| Article ID: | iaor20119012 |
| Volume: | 10 |
| Issue: | 1 |
| Start Page Number: | 110 |
| End Page Number: | 121 |
| Publication Date: | Aug 2011 |
| Journal: | International Journal of Logistics Systems and Management |
| Authors: | Nidhi M B, Anil B |
| Keywords: | combinatorial optimization, stochastic processes, simulation: applications, retailing, vehicle routing & scheduling |
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#37; reduction in resource requirement pointing towards a superior strategy for cost optimisation.