Logistics Management

Logistics Cost Optimization at L& ampere;T, galvanizing and Automation Division Project Report Contact psyche from L&T (E&A) Mr. Narendra U. Jain old Executive Group 5 Aditi Sinha Kamalesh Kumar Chaudhary Pragya Jain Prahlad Kushwaha Sayan Gupta Someswar Basak Executive sum-up traditionally the company has been following the Hub and Spoke, Centrally stock and point freightage models. Hub and spoke model constitutes for about 62 % of periodic gross sales value. This leads to signifi push asidet 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 cut responsiveness. This also increases the transportation exist which accounts for lions division of the logistics apostrophize. The company relies on third party logistics companies for all transportations. to each one stockist is assigned to the nigh spoke. Orders are plac ed by the stockists on any of the 6 working days in the week. The conveyor belt dispatches the material to the respective(prenominal) stockist the nearest warehouse. The logistics company uses their own logic, knowledge and have got to emphasize to minimize the transportation cost. In most of the cases bounteous motortruck Load (FTL) is not achieved.

This leads to the delay in transportation, because the transporter waits gutter he gets a FTL on that route. This significantly affects the supporter aim at the WSS and the delivery date at the WSS becomes unpredictable. trouble valued to improve the service level at the versatile stockists and 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 statistical distribution 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 destiny to get a full essay, order it on our website: OrderCustomPaper.com

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