Research Article
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Year 2020, Volume: 7 Issue: 4, 160 - 182, 31.12.2020
https://doi.org/10.17261/Pressacademia.2020.1331

Abstract

References

  • Apte, U. and Viswanathan, S. (2000) Effective Cross Docking for Improving Distribution Efficiencies. International Journal of Logistics Research and Applications, 3(3), 291-302. Doi.org/10.1080/713682769
  • Augerat, P., Belenguer, J. M., Benavent, E., Corberan, A. and Nadder, D. (1998) Separating Capacity Constraints in the Cvro Using Tabu Search. European Journal of Operational Research, 160(2-3), 546-557. DOI:10.1016/S0377-2217(97)00290-7
  • Ballou, R. (2004) Business Logistics/Supply Chain Management: Planning, Organizing, and Controlling the Supply Chain, New Jersey, Pearson Education.
  • Bank. J., C. I., J., Nelson, B., And Nicol, D. (2010) Discrete-Event System Simulation, London, Pearson.
  • Banks, J. 1998. Handbook of Simulation: Principles, Methodology, Advances, Applications, and Practice, New York, John Wiley and Sons, Inc.
  • Beuthe, M. and Bouffioux, C. (2008). Analysing Qualitative Attributes of Freight Transport from Stated Orders of Preference Experiment. Journal of Transport Economics and Policy, 42(1), 105-128. http://www.catchword.com/cgi-bin/cgi?ini=bcandbody=l ... 0080101)42:1L.105;1-
  • Bowersox, D., Closs, D. and Cooper, M. (2007) Supply Chain Logistics Management, Boston, Mcgraw Hill.
  • Boyson, S., Han, C. and Macdonald, J. (2011). X-Scm Network Design. In: Harrington, L. B., S., and Corsi, T. (Ed.) X-Scm: The New Science of X-Treme Supply Chain Management. New York: Routledge.
  • Brar, G. and Saini, G. (2011). Milk Run Logistics: Literature Review and Directions. Proceedings of the World Congress On Engineering, July 6 - 8, 2011, London, UK.
  • Cachon, G. and Terwiesch, C. (2009) Matching Supply with Demand: an Introduction to Operations Management, Boston, Mcgraw Hill.
  • Caputo, A. C., Fratocchi, L. and Pelagagge, P. M. (2005) A Framework for Analysing Long-Range Direct Shipping Logistics. Industrial Management and Data Systems, 105(7), 876-899. Doi.org/10.1108/02635570510616094
  • Caputo, A. C., Fratocchi, L. and Pelagagge, P. M. (2006) A Genetic Approach for Freight Transportation Planning. Industrial Management and Data Systems, 106(5), 719-738. Doi.org/10.1108/02635570610666467
  • Caputo, M. and Mininno, V. (1996) Internal, Vertical and Horizontal Logistics Integration in Italian Grocery Distribution. International Journal of Physical Distribution and Logistics Management, 26(9), 64-90.Doi.org/10.1108/09600039610149101
  • Carinic, T. (1999) Long-Haul Freight Transportation. In: Hall, R. W. (Ed.) Handbook of Transportation Science. Dordrecht: Kluwer Academic Publishers.
  • Cherikh, M.(2000) On The Effect Of Centralization on Expected Profits In A Multi-Location Newsboy Problem. Journal of the Operational Research Society, 51(6), 755. Doi.org/10.1057/palgrave.jors.2600955
  • Chopra, S. and Meindl, P. (2010) Supply Chain Management: Strategy, Planning, and Operation, New York, Pearson.
  • Christopher, M. 2005. Logistics And Supply Chain Management: Creating Value-Adding Networks, Harlow, Ft Prentice Hall.
  • Christopher, M. and Towill, D. (2000) Supply Chain Migration From Lean and Functional to Agile and Customised. Supply Chain Management: an International Journal, 5, 206-213.Doi.org/10.1108/13598540010347334
  • Cohen, M. and Lee, H. (1989) Resource Deployment Analysis of Global Manufacturing and Distribution Networks. Journal of Manufacturing and Operations Management (2), 81-104.
  • Cohen, M. and Moon, S. (1990) Impact of Production Scale Economies, Manufacturing Complexity, and Transportation Costs on Supply Chain Facility Networks. Journal of Manufacturing and Operation Management, 6, 269-292.
  • Coyle, J., Langley, J., Gibson, B., Novack, R. and Bardi, E. (2009) Supply Chain Management: A Logistics Perspective, Mason, South-Western Cengage Learning.
  • Crandall, R., Crandall, W. and Chen, C. (2010) Principles of Supply Chain Management, London, Crc Press Taylor and Francis Group.
  • CSCMP(2012, September 20) Milk Run. Council of Supply Chain Management Professional. Available from: http://cscmp.org/digital/glossary/glossary.asp
  • Du, T., Wang, F. K. and Lu, P.-Y. (2007) A Real-Time Vehicle-Dispatching System for Consolidating Milk Runs. Transportation Research Part E: Logistics And Transportation Review, 43(5), 565-577. Doi.org/10.1016/j.tre.2006.03.001
  • Eisenhardt, K. M. and Graebner, M. E. (2007) Theory Building from Cases: Opportunities and Challenges. Academy of Management Journal, 50, 25-32.Doi.org/10.5465/amj.2007.24160888
  • Eppen, G. D. (1979) Effects of Centralization On Expected Costs In a Multi-Location Newsboy Problem. Management Science, 25(5), 498-501. www.jstor.org/stable/2630280
  • Esri (2012, September 20) Top Five Benefits Of Gis. Available from: http://www.gis.com/content/top-five-benefits-gis
  • Federgruen, A. and Simchi-Levi, D. (1995) Chapter 4 Analysis of Vehicle Routing and Inventory-Routing Problems. In: M.O. Ball, T. L. M. C. L. M. and Nemhauser, G. L. (Eds.) Handbooks In Operations Research And Management Science. Elsevier.
  • Fritzsche, R. (2012) Cost Adjustment for Single Item Pooling Models Using a Dynamic Failure Rate: A Calculation for the Aircraft Industry. Transportation Research Part E: Logistics And Transportation Review, 48(6), 1065-1079 Doi.org/10.1016/j.tre.2012.04.003
  • Gerchak, Y. and Gupta, D. (1991) On Apportioning Costs to Customers In Centralized Continuous Review Inventory Systems. Journal of Operations Management, 10(4), 546-551.Doi.org/10.1016/0272-6963(91)90010-U
  • Gjerdrum, J., Shah, N. and Papageorgious, L. (2001) Transfer Prices for Multienterprise Supply Chain Optimisation. Industrial and Engineering Chemisry Research, 40, 1650-1660.Doi.org/10.1021/ie000668m
  • Hall, R. W. (2004) Domicile Selection and Risk Pooling For Trucking Networks. Iie Transactions, 36(4), 299-305 Doi.org/10.1080/07408170490247421
  • Heizer, J. and Render, B. (2001) Operation Management, New Jersey, Prentice Hall.
  • Hoffmann, F. and Kumar, S. (2010) Globalisation-The Maritime Nexus. In: Grammenos, C. (Ed.) The Handbook of Maritime Economics and Business. 2nd Ed. London: Lloyd’s List.
  • Jung, J. Y., Blau, G., Pekny, J. F., Reklaitis, G. V. and Eversdyk, D. (2004) A Simulation Based Optimization Approach to Supply Chain Management Under Demand Uncertainty. Computers and Chemical Engineering, 28(10), 2087-2106. Doi.org/10.1016/j.compchemeng.2004.06.006
  • Lee, D.-J. and Jeong, I.-J. (2009) Regression Approximation for a Partially Centralized Inventory System Considering Transportation Costs. Computers and Industrial Engineering, 56(4), 1169-1176.Doi.org/10.1016/j.cie.2008.06.005
  • Manivannan, M. (1998) Simulation of Logistics and Transportation Systems. In: Banks, J. (Ed.) Handbook Of Simulation: Principles, Methodology, Advances, Applications, and Practice. New York: John Wiley and Sons, Inc.
  • Matko, D., Zupancic, B. and Karba, R. (1992) Simulation and Modelling of Continuous Systems, New York, Prentice Hall.
  • Mckinnon, A. C. and Ge, Y. (2006) The Potential for Reducing Empty Running By Trucks: A Retrospective Analysis. International Journal of Physical Distribution and Logistics Management, 36(5), 391-410. Doi.org/10.1108/09600030610676268
  • Meepetchdee, Y. and Shah, N. (2007) Logistical Network Design with Robustness And Complexity Considerations. International Journal of Physical Distribution and Logistics Management, 37(3), 201-222.Doi.org/10.1108/09600030710742425
  • Robson, C. (2002) Real World Research, Oxford, Blackwell.
  • Schonsleben, P. (2004) Integral Logistics Management: Planning and Control of Comprehensive Supply Chains, London, Crc Press.
  • Shang, J., Yildirim, T. P., Tadikamalla, P., Mittal, V. and Brown, L. H. 2009. Distribution Network Redesign for MarketingCompetitiveness. Journal Of Marketing, 73(2), 146-163. Doi.org/10.1509/jmkg.73.2.146
  • Silver, E., Pyke, D. and Peterson, R. (1998) Inventory Management and Production Planning and Scheduling, New York, John Wiley and Sons.
  • Simchi-Levi, D., Kaminsky, P. and Simchi-Levi, E. (2009) Designing and Managing the Supply Chain: Concepts, Strategies and Case Studies, New York, Mcgraw-Hill.
  • Slack, N., Chambers, S. and Johnston, R. (2010) Operation Management, Harlow, Ft Prentice Hall.
  • Swink, M., Melnyk, S., Cooper, M. and Hartley, J. (2011) Managing Operations Across the Supply Chain, New York, Mcgraw-Hill.
  • Thai, V. V. and Grewal, D. (2005) Selecting The Location of Distribution Centre In Logistics Operations: A Conceptual Framework and Case Study. Asia Pacific Journal of Marketing And Logistics, 17(3), 3-24.Doi.org/10.1108/13555850510672359
  • Tsiakis, P., Shah, N. and Pentelides, C. (2001) Design of Multi-Echelon Supply Chain Networks Under Demand Uncertainty. Industrial and Engineering Chemistry Research, 40(16), 3585-3604.Doi.org/10.1021/ie0100030
  • Valten, K. (2009) Mathematical Modelling and Simulation: Introduction for Scientists and Engineers, Weinheim, Wiley-Vch Gmbh and Co. Kgaa.
  • Westminstercollege (2012, September 20) Geographic Information System. Available from http://www.westminster.edu/staff/athrock/GIS/GIS.pdf
  • Wisner, J., Leong, G. and Tan, K. (2012) Principles of Supply Chain Management: A Balanced Approach, New York, Cengage Learning

ENHANCING DISTRIBUTION NETWORK PERFORMANCE: A QUANTITATIVE APPROACH TO DEVELOPING A DISTRIBUTION STRATEGY MODEL

Year 2020, Volume: 7 Issue: 4, 160 - 182, 31.12.2020
https://doi.org/10.17261/Pressacademia.2020.1331

Abstract

Purpose- This paper examines distribution network and distribution strategy choice problem in the presence of uncertain demands. The authors discuss the implications of cost and capacity-utilisation in locating centralised or decentralised distribution centres, which are inherently associated with different distribution strategies.
Methodology- A case study approach is adopted, and several scenarios for distribution network and distribution strategy are designed, thus enabling us to perform in-depth analysis using mathematical modelling and simulation techniques. Based on the data from a real case study company, herein referred to as ‘Corporation A’, five typical scenarios are designed to represent different combinations of distribution networks and distribution strategies. The five scenarios are mathematically simulated to evaluate their costs and capacity-utilisations. A distribution strategy model (DSM) is then developed accordingly to support decision making for enhancing distribution performance.
Findings- The results show the potential of the developed distribution strategy model (DSM) in supporting consistent maximisation of distribution operations despite uncertainties in demands in a dynamic market environment, and hence lowering inventory and transportation costs. Whilst findings show the importance of using numerical approach in obtaining an optimum location for distribution centres, the study eventually revealed the necessary need to inject adequate level of informed local knowledge based on experience into decision making. Attributes such as costs, labour productivity, policy government, proximity to markets and suppliers are crucial in making the informed decision necessary for an optimum distribution facility location.
Conclusion- Uncertainties in demand put huge pressure on distribution-networks, with consequent significant costs and service implications. In search for solution to complex distribution problems, deploying a widened array of scenarios for scrutiny is necessary in reaching a robust and optimized solution. Given volatility in the contemporary supply chain, there are both theoretical and practical needs to actively consider, re-consider or re-design various distribution network for improved performance.

References

  • Apte, U. and Viswanathan, S. (2000) Effective Cross Docking for Improving Distribution Efficiencies. International Journal of Logistics Research and Applications, 3(3), 291-302. Doi.org/10.1080/713682769
  • Augerat, P., Belenguer, J. M., Benavent, E., Corberan, A. and Nadder, D. (1998) Separating Capacity Constraints in the Cvro Using Tabu Search. European Journal of Operational Research, 160(2-3), 546-557. DOI:10.1016/S0377-2217(97)00290-7
  • Ballou, R. (2004) Business Logistics/Supply Chain Management: Planning, Organizing, and Controlling the Supply Chain, New Jersey, Pearson Education.
  • Bank. J., C. I., J., Nelson, B., And Nicol, D. (2010) Discrete-Event System Simulation, London, Pearson.
  • Banks, J. 1998. Handbook of Simulation: Principles, Methodology, Advances, Applications, and Practice, New York, John Wiley and Sons, Inc.
  • Beuthe, M. and Bouffioux, C. (2008). Analysing Qualitative Attributes of Freight Transport from Stated Orders of Preference Experiment. Journal of Transport Economics and Policy, 42(1), 105-128. http://www.catchword.com/cgi-bin/cgi?ini=bcandbody=l ... 0080101)42:1L.105;1-
  • Bowersox, D., Closs, D. and Cooper, M. (2007) Supply Chain Logistics Management, Boston, Mcgraw Hill.
  • Boyson, S., Han, C. and Macdonald, J. (2011). X-Scm Network Design. In: Harrington, L. B., S., and Corsi, T. (Ed.) X-Scm: The New Science of X-Treme Supply Chain Management. New York: Routledge.
  • Brar, G. and Saini, G. (2011). Milk Run Logistics: Literature Review and Directions. Proceedings of the World Congress On Engineering, July 6 - 8, 2011, London, UK.
  • Cachon, G. and Terwiesch, C. (2009) Matching Supply with Demand: an Introduction to Operations Management, Boston, Mcgraw Hill.
  • Caputo, A. C., Fratocchi, L. and Pelagagge, P. M. (2005) A Framework for Analysing Long-Range Direct Shipping Logistics. Industrial Management and Data Systems, 105(7), 876-899. Doi.org/10.1108/02635570510616094
  • Caputo, A. C., Fratocchi, L. and Pelagagge, P. M. (2006) A Genetic Approach for Freight Transportation Planning. Industrial Management and Data Systems, 106(5), 719-738. Doi.org/10.1108/02635570610666467
  • Caputo, M. and Mininno, V. (1996) Internal, Vertical and Horizontal Logistics Integration in Italian Grocery Distribution. International Journal of Physical Distribution and Logistics Management, 26(9), 64-90.Doi.org/10.1108/09600039610149101
  • Carinic, T. (1999) Long-Haul Freight Transportation. In: Hall, R. W. (Ed.) Handbook of Transportation Science. Dordrecht: Kluwer Academic Publishers.
  • Cherikh, M.(2000) On The Effect Of Centralization on Expected Profits In A Multi-Location Newsboy Problem. Journal of the Operational Research Society, 51(6), 755. Doi.org/10.1057/palgrave.jors.2600955
  • Chopra, S. and Meindl, P. (2010) Supply Chain Management: Strategy, Planning, and Operation, New York, Pearson.
  • Christopher, M. 2005. Logistics And Supply Chain Management: Creating Value-Adding Networks, Harlow, Ft Prentice Hall.
  • Christopher, M. and Towill, D. (2000) Supply Chain Migration From Lean and Functional to Agile and Customised. Supply Chain Management: an International Journal, 5, 206-213.Doi.org/10.1108/13598540010347334
  • Cohen, M. and Lee, H. (1989) Resource Deployment Analysis of Global Manufacturing and Distribution Networks. Journal of Manufacturing and Operations Management (2), 81-104.
  • Cohen, M. and Moon, S. (1990) Impact of Production Scale Economies, Manufacturing Complexity, and Transportation Costs on Supply Chain Facility Networks. Journal of Manufacturing and Operation Management, 6, 269-292.
  • Coyle, J., Langley, J., Gibson, B., Novack, R. and Bardi, E. (2009) Supply Chain Management: A Logistics Perspective, Mason, South-Western Cengage Learning.
  • Crandall, R., Crandall, W. and Chen, C. (2010) Principles of Supply Chain Management, London, Crc Press Taylor and Francis Group.
  • CSCMP(2012, September 20) Milk Run. Council of Supply Chain Management Professional. Available from: http://cscmp.org/digital/glossary/glossary.asp
  • Du, T., Wang, F. K. and Lu, P.-Y. (2007) A Real-Time Vehicle-Dispatching System for Consolidating Milk Runs. Transportation Research Part E: Logistics And Transportation Review, 43(5), 565-577. Doi.org/10.1016/j.tre.2006.03.001
  • Eisenhardt, K. M. and Graebner, M. E. (2007) Theory Building from Cases: Opportunities and Challenges. Academy of Management Journal, 50, 25-32.Doi.org/10.5465/amj.2007.24160888
  • Eppen, G. D. (1979) Effects of Centralization On Expected Costs In a Multi-Location Newsboy Problem. Management Science, 25(5), 498-501. www.jstor.org/stable/2630280
  • Esri (2012, September 20) Top Five Benefits Of Gis. Available from: http://www.gis.com/content/top-five-benefits-gis
  • Federgruen, A. and Simchi-Levi, D. (1995) Chapter 4 Analysis of Vehicle Routing and Inventory-Routing Problems. In: M.O. Ball, T. L. M. C. L. M. and Nemhauser, G. L. (Eds.) Handbooks In Operations Research And Management Science. Elsevier.
  • Fritzsche, R. (2012) Cost Adjustment for Single Item Pooling Models Using a Dynamic Failure Rate: A Calculation for the Aircraft Industry. Transportation Research Part E: Logistics And Transportation Review, 48(6), 1065-1079 Doi.org/10.1016/j.tre.2012.04.003
  • Gerchak, Y. and Gupta, D. (1991) On Apportioning Costs to Customers In Centralized Continuous Review Inventory Systems. Journal of Operations Management, 10(4), 546-551.Doi.org/10.1016/0272-6963(91)90010-U
  • Gjerdrum, J., Shah, N. and Papageorgious, L. (2001) Transfer Prices for Multienterprise Supply Chain Optimisation. Industrial and Engineering Chemisry Research, 40, 1650-1660.Doi.org/10.1021/ie000668m
  • Hall, R. W. (2004) Domicile Selection and Risk Pooling For Trucking Networks. Iie Transactions, 36(4), 299-305 Doi.org/10.1080/07408170490247421
  • Heizer, J. and Render, B. (2001) Operation Management, New Jersey, Prentice Hall.
  • Hoffmann, F. and Kumar, S. (2010) Globalisation-The Maritime Nexus. In: Grammenos, C. (Ed.) The Handbook of Maritime Economics and Business. 2nd Ed. London: Lloyd’s List.
  • Jung, J. Y., Blau, G., Pekny, J. F., Reklaitis, G. V. and Eversdyk, D. (2004) A Simulation Based Optimization Approach to Supply Chain Management Under Demand Uncertainty. Computers and Chemical Engineering, 28(10), 2087-2106. Doi.org/10.1016/j.compchemeng.2004.06.006
  • Lee, D.-J. and Jeong, I.-J. (2009) Regression Approximation for a Partially Centralized Inventory System Considering Transportation Costs. Computers and Industrial Engineering, 56(4), 1169-1176.Doi.org/10.1016/j.cie.2008.06.005
  • Manivannan, M. (1998) Simulation of Logistics and Transportation Systems. In: Banks, J. (Ed.) Handbook Of Simulation: Principles, Methodology, Advances, Applications, and Practice. New York: John Wiley and Sons, Inc.
  • Matko, D., Zupancic, B. and Karba, R. (1992) Simulation and Modelling of Continuous Systems, New York, Prentice Hall.
  • Mckinnon, A. C. and Ge, Y. (2006) The Potential for Reducing Empty Running By Trucks: A Retrospective Analysis. International Journal of Physical Distribution and Logistics Management, 36(5), 391-410. Doi.org/10.1108/09600030610676268
  • Meepetchdee, Y. and Shah, N. (2007) Logistical Network Design with Robustness And Complexity Considerations. International Journal of Physical Distribution and Logistics Management, 37(3), 201-222.Doi.org/10.1108/09600030710742425
  • Robson, C. (2002) Real World Research, Oxford, Blackwell.
  • Schonsleben, P. (2004) Integral Logistics Management: Planning and Control of Comprehensive Supply Chains, London, Crc Press.
  • Shang, J., Yildirim, T. P., Tadikamalla, P., Mittal, V. and Brown, L. H. 2009. Distribution Network Redesign for MarketingCompetitiveness. Journal Of Marketing, 73(2), 146-163. Doi.org/10.1509/jmkg.73.2.146
  • Silver, E., Pyke, D. and Peterson, R. (1998) Inventory Management and Production Planning and Scheduling, New York, John Wiley and Sons.
  • Simchi-Levi, D., Kaminsky, P. and Simchi-Levi, E. (2009) Designing and Managing the Supply Chain: Concepts, Strategies and Case Studies, New York, Mcgraw-Hill.
  • Slack, N., Chambers, S. and Johnston, R. (2010) Operation Management, Harlow, Ft Prentice Hall.
  • Swink, M., Melnyk, S., Cooper, M. and Hartley, J. (2011) Managing Operations Across the Supply Chain, New York, Mcgraw-Hill.
  • Thai, V. V. and Grewal, D. (2005) Selecting The Location of Distribution Centre In Logistics Operations: A Conceptual Framework and Case Study. Asia Pacific Journal of Marketing And Logistics, 17(3), 3-24.Doi.org/10.1108/13555850510672359
  • Tsiakis, P., Shah, N. and Pentelides, C. (2001) Design of Multi-Echelon Supply Chain Networks Under Demand Uncertainty. Industrial and Engineering Chemistry Research, 40(16), 3585-3604.Doi.org/10.1021/ie0100030
  • Valten, K. (2009) Mathematical Modelling and Simulation: Introduction for Scientists and Engineers, Weinheim, Wiley-Vch Gmbh and Co. Kgaa.
  • Westminstercollege (2012, September 20) Geographic Information System. Available from http://www.westminster.edu/staff/athrock/GIS/GIS.pdf
  • Wisner, J., Leong, G. and Tan, K. (2012) Principles of Supply Chain Management: A Balanced Approach, New York, Cengage Learning
There are 52 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Articles
Authors

Yang Xıong This is me 0000-0002-2007-4854

Chukwuneke Okorıe This is me 0000-0002-8078-1323

Golda Ezeoke This is me

Publication Date December 31, 2020
Published in Issue Year 2020 Volume: 7 Issue: 4

Cite

APA Xıong, Y., Okorıe, C., & Ezeoke, G. (2020). ENHANCING DISTRIBUTION NETWORK PERFORMANCE: A QUANTITATIVE APPROACH TO DEVELOPING A DISTRIBUTION STRATEGY MODEL. Journal of Management Marketing and Logistics, 7(4), 160-182. https://doi.org/10.17261/Pressacademia.2020.1331

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