search query: @indexterm distribution costs / total: 71
reference: 3 / 71
| Author: | Sery, S. Presti, V. Shobrys, D. E. |
| Title: | Optimization Models for Restructuring BASF North America's Distribution System |
| Journal: | Interfaces
2001 : MAY-JUN, VOL. 31:3, p. 55-65 |
| Index terms: | OPTIMIZATION DISTRIBUTION DISTRIBUTION COSTS |
| Language: | eng |
| Abstract: | By 1995, annual distribution costs for BASF North America's packaged goods were nearly $100 million. The firm explored trade-offs between customer service and operating costs in a redesign effort using linear- programming-based models. The project team adapted formulations to the extensive available data and used a series of formulations to cope with the scale of the project. A flexible modeling tool aided the team in implementing these formulations. The resulting revised distribution system reduced costs and improved customer service, and the modified distribution network took next-day deliveries from 77 percent to 90 percent. Although the team expected reduction in annual costs of 10 percent, subsequent customer service initiatives reduced the potential savings. |
SCIMA