Production-distribution network design of a global supply chain alliance from the key player's perspective

2007 ◽  
Vol 45 (2) ◽  
pp. 245-265 ◽  
Author(s):  
H.-Y. S. Chen ◽  
C.-W. R. Lin ◽  
Y. Yih
Author(s):  
Gökçe Çiçek Ceyhun

Distribution consists of moving and storing a product from the supplier to customer during the supply chain process. Distribution process is crucial decision of a company due to its effects on supply chain cost and customer satisfaction. In the competitive environment of the business, all companies aim to minimize delivery costs and maximize customer satisfaction by applying optimum distribution network design. The design of effective distribution network requires critical decisions as the location and the capacity of distribution centers together with logistic activities, which consist of transportation and inventory process. The purpose of this research is to define a deep literature review regarding definition of distribution network, distribution channels, selection of distribution, and the factors affecting distribution network design. After reviewing a comprehensive literature on distribution network design, this chapter includes suggestions.


2021 ◽  
Vol 39 (4) ◽  
pp. 1050-1057
Author(s):  
O.S. Okunade ◽  
S.A. Daodu

A distribution network design of fast-moving consumer goods ensures distribution of products in an effective manner by giving  maximum customers’ satisfaction and minimum distribution cost. The study evaluates the distribution through direct shipment and the use of intermediate shipment for distribution of products from plant to depots. A real-life case study in Southwestern Nigeria was defined and solved as a linear programming model to minimise total cost of distribution from plant to the depots with consideration of four routing options. The results show that distribution through intermediaries gives a better solution than routing option with  direct shipment. The best routing option with intermediate points when compared with the routing option with direct shipment gives a savings of 1,819,490.00 Naira which translates to 13.46% cost savings. The study shows that the location of intermediaries is a key decision in distribution network design and that the intermediaries add value to the distribution networks in supply chain. Keywords: Distribution network; Supply chain design; Fast-moving consumer goods; Linear programming


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