Logistic cost optimization for domestic market operations in a snacks and candy company

Teresa Verduzco-Garza*, Edgar Granda, Ana Cecilia Davila, Dulce Angelica Ibarra, Pamela Aimee Alanis, Bernardo Villarreal

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In recent years, the logistics component in supply chain management had become an important link with significant optimization potential in transportation, storage and the inventory management systems, all of them affecting the on time delivery indicator and also the total product cost. The present study was developed in a snacks and candy multinational company specifically on the domestic market finish product supply, analyzing the current network and shipping method in order to provide an optimal truck capacity to reduce the shipping cost and the frequency definition of shipments for the different distribution centers and direct deliveries to specific customers through the logistic network. The methodology applied was supported by Hall's Systems Analysis, and the software GAMS CPLEX for the mathematical modeling. A significant logistics cost reduction was accomplished reducing some of the transportation wastes and increasing the use of the transportation assets without affecting the current service level and on time deliveries.

Original languageEnglish
Title of host publicationProceedings of the International Conference on Industrial Engineering and Operations Management
PublisherIEOM Society
Pages1968-1969
Number of pages2
Volume2018
EditionSEP
Publication statusPublished - Sept 2018
Event3rd North American IEOM Conference. IEOM 2018 -
Duration: 27 Sept 201829 Sept 2018

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management

Conference

Conference3rd North American IEOM Conference. IEOM 2018
Period27/9/1829/9/18

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research
  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering

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