DISTRIBUTION SYSTEM DESIGN USING OPTIMIZATION APPROACH
Abstract (Summary)The thesis proposes a methodology for designing a complex distribution system. Designing a distribution network requires several qualitative and quantitative issues to be considered. Quantitative issues could be deciding relevant costs to be considered which would have an impact on the design of the distribution system, while the qualitative issues could be the service level constraint. The thesis discusses different issues which could be important in designing a distribution system and develops a model which could be used to decide the number of distribution centers and their locations. The thesis proposes a three step approach. In the first step, the model is made to choose the locations of the distribution centers by specifying the number of distribution centers desired in the network. In the second step, total cost obtained for each scenario is plotted on the graph. The total numbers of distribution centers are decided from the scenario which has the minimum total cost. In the third step, the result obtained is then fine tuned as per the business specifications. This model is developed for a generic drug manufacturer. Though the model is developed for a specific business case, the design of the model provides the flexibility to incorporate the same model for different business cases.
School:University of Cincinnati
School Location:USA - Ohio
Source Type:Master's Thesis
Date of Publication:01/01/2004