UPM Institutional Repository

Cost analysis of two different configurations for a distribution network design


Firoozi, Zahra and Ismail, Napsiah and Ariafar, Shahram and Tang, Sai Hong and Mohd Ariffin, Mohd Khairol Anuar and Memariani, Azizollah (2014) Cost analysis of two different configurations for a distribution network design. Applied Mechanics and Materials, 564. pp. 656-660. ISSN 1660-9336; ESSN: 1662-7482


One significant decision in supply chain management is to determine the configuration of the supply chain network. However, studies that analyze different configurations are rare in the literature. This paper considers a supply chain network consisting of one supplier and a number of retailers. Two different configurations were proposed and were compared in terms of total cost for the network. In the first configuration, retailers directly order to the supplier and hold the inventory to meet the demand of customers. However, in the second configuration, a number of intermediate facilities were established to order products from the supplier and satisfy the demands of retailers. The inventory of retailers in the latter configuration is stored in the intermediate facilities. These two configurations were compared in terms of total cost. Numerical calculations indicate that the latter configuration was preferred in most cases.

Download File

PDF (Abstract)
Cost analysis of two different configurations for a distribution network design.pdf

Download (84kB) | Preview
Official URL or Download Paper: http://www.scientific.net/AMM.564.656

Additional Metadata

Item Type: Article
Divisions: Faculty of Engineering
DOI Number: https://doi.org/10.4028/www.scientific.net/AMM.564.656
Publisher: Trans Tech Publications
Keywords: Distribution network design; Facility location; Inventory control; Network configuration; Supply chain management
Depositing User: Nabilah Mustapa
Date Deposited: 24 May 2015 10:05
Last Modified: 15 Sep 2015 03:58
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.4028/www.scientific.net/AMM.564.656
URI: http://psasir.upm.edu.my/id/eprint/36920
Statistic Details: View Download Statistic

Actions (login required)

View Item View Item