The complex interactions that occur in large distribution systems prevent their analysis as one entity. The only practical way to resolve the question of “Can a distribution system be improved?” is to break it into a series of interrelated smaller questions, The natural place to start is by defining the geographical relationships among the various components of the system, The following are typical questions in distribution analysis whose answers provide significant improvement in both service and cost (Jarvis and Ratliff, 1992, pp. 2199-2201).
- Where are customers, warehouses, and plants?
- What are their relevant characteristics?
- What is the profit associated with each customer?
- Are customer service requirements reasonable?
- Is the delivery strategy reasonable?
- Is the allocation of customers to warehouses appropriate?
- Is in-bound mode selection appropriate?
- Is in-bound sourcing appropriate?
- Is the number, configuration, and location of warehouses right?
- Is the number, configuration, and location of plants right?
The key requirements for determining how to improve a distribution system are: insights as to what alternatives should be considered and computer models that allow flexibility in generating, modifying, and evaluating the alternatives.
Jarvis, John J. and Ratliff, Donald. Distribution and Logistics, in Salvendy, Gavriel ed. Handbook of Industrial Engineering, 2nd. ed, John Wiley and Sons, New York, 1992, pp. 2199-2214.
2007-02-15 10:45 pm
