Reducing outbound transportation costs

A case study

Edgar Granda, Bernardo Villarreal

Research output: Contribution to journalConference article

Abstract

The problem of decreasing truck transportation costs for Mexican firms is of great interest and a challenge due to the currently deficient supply structure. This work deals with the case of leading Mexican tobacco manufacturer that requires a reduction of its outbound transportation cost under a decliningmarket scenario. The approach applied to achieve the objective includes the elimination of important transportation wastes through mathematical modeling techniques. Truck fill loss and distance travelled in excess are identified as the main wastes existent in the transportation of finished product from the manufacturing plant, located in Monterrey, to three regional warehousing hubs, and then, from these to 70 distribution centers located throughout the country. The application of location and/or routing models imbedded into a decision analysis scheme and supported by a GIS system is carried out to obtain the solution to several scenarios developed by the management of the company. Results and advances of their implementation are provided.

Original languageEnglish
Pages (from-to)142-150
Number of pages9
JournalProceedings of the International Conference on Industrial Engineering and Operations Management
Volume2017
Issue numberOCT
Publication statusPublished - 1 Jan 2017
EventIEOM Bogota Conference / 1st South American Congress 2017 - Bogota, Colombia
Duration: 25 Oct 201626 Oct 2016

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Truck transportation
Costs
Tobacco
Decision theory
Geographic information systems
Trucks
Scenarios
Transportation costs
Industry
Warehousing
Manufacturing
Mathematical modeling
Hub
Distribution center
Routing
Decision analysis

All Science Journal Classification (ASJC) codes

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

Cite this

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Reducing outbound transportation costs : A case study. / Granda, Edgar; Villarreal, Bernardo.

In: Proceedings of the International Conference on Industrial Engineering and Operations Management, Vol. 2017, No. OCT, 01.01.2017, p. 142-150.

Research output: Contribution to journalConference article

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