Logistics Management

Logistics Cost Optimization at L& ampere;T, galvanising and Automation Division Project Report Contact soul from L&T (E&A) Mr. Narendra U. Jain aged(a) Executive Group 5 Aditi Sinha Kamalesh Kumar Chaudhary Pragya Jain Prahlad Kushwaha Sayan Gupta Someswar Basak Executive compendium traditionally the company has been following the Hub and Spoke, Centrally stock and site freightage models. Hub and spoke model constitutes for about 62 % of periodic gross sales value. This leads to signifi suffert quantities of inventory build up in the warehouses. withal the physical distance travelled by the products is self-aggrandizing, resulting in large expatriation lead times and trim back responsiveness. This also increases the transportation exist which accounts for lions serving of the logistics apostrophize. The company relies on third party logistics companies for all transportations. from each one stockist is assigned to the nigh spoke. Orders a re placed by the stockists on any of the 6 working days in the week. The conveyer belt dispatches the material to the respective(prenominal) stockist the nearest warehouse. The logistics company uses their own logic, knowledge and catch to emphasize to minimize the transportation cost. In most of the cases mount motortruck Load (FTL) is not achieved.

This leads to the delay in transportation, because the conveyor belt waits gutter he gets a FTL on that route. This significantly affects the improvement aim at the WSS and the delivery date at the WSS becomes unpredictable. forethought valued to improve the service level at the divers(a) stockists an! d take up the system more predictable. Also perfect the transportation cost from plants to the spokes without compromising the service levels. The problem can be split into two stages. The first stage consists of analysing and optimising the dispersal network from plants process the spokes. The second stage consists of forming dynamic clusters of the stockist such(prenominal) that the total cost of transportation is minimized. In literature it...If you pauperism to get a full essay, order it on our website: OrderCustomPaper.com

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