A logistics network design for a hardware store marketer in the Valle del Cauca center

Abstract

The logistic network design is a way to manage the supply chain management, in the way to integrate of all activities to search an improvement of relationship in the chain, in order to achieve sustainable competitive advantages. It is the reason this paper has the goal to design an efficient distibution system in terms of total cost logistics for a hardware store marketer in Valle del cauca center. For that, a linear programming model proposed in the theory is used to minimize the total logistics cost. Additionally, this paper studies the cycle time problem and makes special emphasis in routing that involves two distibution centers and various centers of demand. In the model, two scenarios are evaluated, the first keep the actual behavior of the company and the second is a new logistic proposal. The total cost for scenario 1 were $1.739.792.680 and for scenario 2 were $1.682.708.680. On the other hand, routing results present a report that show the best feasible solution, minimizing the total distance traveled and setting stops, schedules and routes sequence. As a conclution, it`s so important to design logistics network considering the costs of logistics that minimize the operation through operational strategies in production, storage and distribution of organizations.