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

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 - Sep 2018
Event3rd North American IEOM Conference. IEOM 2018 -
Duration: 27 Sep 201829 Sep 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

Fingerprint

Logistics
Freight transportation
Costs
Industry
Supply chain management
Cost reduction
Trucks
Systems analysis
Cost optimization
Logistics cost
Domestic market
Shipping
Delivery time
Management system
Mathematical modeling
Service levels
Product cost
Inventory management
Multinational companies
Distribution center

All Science Journal Classification (ASJC) codes

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

Cite this

Verduzco-Garza, T., Granda, E., Davila, A. C., Ibarra, D. A., Alanis, P. A., & Villarreal, B. (2018). Logistic cost optimization for domestic market operations in a snacks and candy company. In Proceedings of the International Conference on Industrial Engineering and Operations Management (SEP ed., Vol. 2018, pp. 1968-1969). (Proceedings of the International Conference on Industrial Engineering and Operations Management). IEOM Society.
Verduzco-Garza, Teresa ; Granda, Edgar ; Davila, Ana Cecilia ; Ibarra, Dulce Angelica ; Alanis, Pamela Aimee ; Villarreal, Bernardo. / Logistic cost optimization for domestic market operations in a snacks and candy company. Proceedings of the International Conference on Industrial Engineering and Operations Management. Vol. 2018 SEP. ed. IEOM Society, 2018. pp. 1968-1969 (Proceedings of the International Conference on Industrial Engineering and Operations Management).
@inproceedings{519419d41d974ccaaac70d4ad0b6ea2a,
title = "Logistic cost optimization for domestic market operations in a snacks and candy company",
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.",
author = "Teresa Verduzco-Garza and Edgar Granda and Davila, {Ana Cecilia} and Ibarra, {Dulce Angelica} and Alanis, {Pamela Aimee} and Bernardo Villarreal",
year = "2018",
month = "9",
language = "English",
volume = "2018",
series = "Proceedings of the International Conference on Industrial Engineering and Operations Management",
publisher = "IEOM Society",
pages = "1968--1969",
booktitle = "Proceedings of the International Conference on Industrial Engineering and Operations Management",
edition = "SEP",

}

Verduzco-Garza, T, Granda, E, Davila, AC, Ibarra, DA, Alanis, PA & Villarreal, B 2018, Logistic cost optimization for domestic market operations in a snacks and candy company. in Proceedings of the International Conference on Industrial Engineering and Operations Management. SEP edn, vol. 2018, Proceedings of the International Conference on Industrial Engineering and Operations Management, IEOM Society, pp. 1968-1969, 3rd North American IEOM Conference. IEOM 2018, 27/9/18.

Logistic cost optimization for domestic market operations in a snacks and candy company. / Verduzco-Garza, Teresa; Granda, Edgar; Davila, Ana Cecilia; Ibarra, Dulce Angelica; Alanis, Pamela Aimee; Villarreal, Bernardo.

Proceedings of the International Conference on Industrial Engineering and Operations Management. Vol. 2018 SEP. ed. IEOM Society, 2018. p. 1968-1969 (Proceedings of the International Conference on Industrial Engineering and Operations Management).

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

TY - GEN

T1 - Logistic cost optimization for domestic market operations in a snacks and candy company

AU - Verduzco-Garza, Teresa

AU - Granda, Edgar

AU - Davila, Ana Cecilia

AU - Ibarra, Dulce Angelica

AU - Alanis, Pamela Aimee

AU - Villarreal, Bernardo

PY - 2018/9

Y1 - 2018/9

N2 - 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.

AB - 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.

UR - http://www.scopus.com/inward/record.url?scp=85066993208&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85066993208&partnerID=8YFLogxK

M3 - Conference contribution

VL - 2018

T3 - Proceedings of the International Conference on Industrial Engineering and Operations Management

SP - 1968

EP - 1969

BT - Proceedings of the International Conference on Industrial Engineering and Operations Management

PB - IEOM Society

ER -

Verduzco-Garza T, Granda E, Davila AC, Ibarra DA, Alanis PA, Villarreal B. Logistic cost optimization for domestic market operations in a snacks and candy company. In Proceedings of the International Conference on Industrial Engineering and Operations Management. SEP ed. Vol. 2018. IEOM Society. 2018. p. 1968-1969. (Proceedings of the International Conference on Industrial Engineering and Operations Management).