Track: Supply Chain Management (SCM) - ERP

Abstract

Supply chain performance can be determined by few factors like operating capital, inventory and time. However, one of the fundamental factors considered while optimizing a supply chain is the transportation cost. In this study, supply chain distribution network of two cable manufacturers were analyzed with the help of a linear programming mathematical model. The framework developed can be broadly categorized into three different stages in the life cycle of a product, namely a) Pre-production Phase b) Post-production Phase c) Distribution Phase. Transportation costs were estimated for each of these phases. Additional scenarios like increasing and decreasing the number of distributors were considered and analyzed for any reduction in the overall transportation costs of the supply chains. The findings show that varying the number of distributors may not necessarily result in a reduction in transportation cost. This study conveys that organizations need to strategically position their distributors to optimize the distribution costs. The developed framework is applicable to any supply chain network with multiple suppliers, single manufacturer, multiple distributors and multiple customers.  This study may inspire future study on developing and solving models with a diverse range of scenarios.