Factory Gate Pricing: An Analysis of the Dutch Retail Distribution

Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution.Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers.Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings.A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector.Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.pricing;retailing;distribution;supply chain management;Netherlands

Factory Gate Pricing: An Analysis of the Dutch Retail Distribution

Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution. Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers. Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings. A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector. Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.supply chain management;factory gate pricing;retail distribution

A case study of two-echelon multi-depot vehicle routing problem

The Vehicle Routing Problem (VRP) is a classic combinatorial optimization problem and a topic still studied for practical applications. Current research focuses on single echelon distribution systems such as distribution centers serving customers. However, in typical distribution, goods flows among regional distribution centers, local warehouses and customers, defined as a two-echelon network. The two-echelon multiple depot VRP problem is documented and applied to two stages illustrated by a small scale computational example. In the first stage, the simulated annealing algorithm is employed to determine the routes between local warehouses and final customers. For the second stage, trial-and-error is applied to obtain the number and location of regional distribution centers and the routes between regional distribution centers and local warehouses. Matlab is utilized to simulate annealing iterations and cost functions are analyzed. The convergence tendency of simulated annealing is depicted in figures by Matlab coding. Contributions include demonstration between the SA algorithm and a specific combinatorial optimization problem, and an application of the algorithm

Advanced Planning Concepts in the Closed-Loop Container Network of ARN

In this paper we discuss a real-life case study in the optimization of the logistics network for the collection of containers from end-of-life vehicle dismantlers in the Netherlands.Advanced planning concepts like dynamic assignment of dismantlers to logistic service providers are analyzed by a simulation model.In this model, we periodically solve a vehicle routing problem to gain insight in the long-term performance of the system.The vehicle routing problem considered is a multi depot pickup and delivery problem with alternative delivery locations.We solve this problem with a heuristic based on route generation and set partitioning.Reverse logistics;Closed-loop supply chain mmanagement;vehicle routing;set partitioning;distribution planning

PENGEMBANGAN MODEL PERIODIC VEHICLE ROUTING PROBLEM WITH SIMULTANEOUS PICKUPS AND DELIVERIES

Faromas Timor Distribution Atambua merupakan distributor yang mendistribusikan produk makanan dan minuman dari beberapa pabrik ternama di Indonesia, seperti PT. Sinar Sosro. Aktivitas pengiriman perusahaan terdiri dari pengiriman produk sekaligus mengambil barang yang dikembalikan berupa botol kosong. Produk yang dikirimkan dan diambil terdiri dari beberapa jenis. Strategi distribusi perusahaan adalah kanvas dimana proses distribusi produk berdasarkan pemesanan secara langsung saat melakukan kunjungan. Kunjungan ke konsumen memiliki frekuensi tertentu yaitu setiap satu kali seminggu. Permasalahan pengaturan rute pada perusahaan ini tergolong dalam Periodic Vehicle Routing Problem with Simultaneous Pickups and Deliveries (PVRPSPD). PVRPSPD merupakan salah satu variasi dari Vehicle Routing Problem (VRP) dengan mempertimbangkan waktu pengiriman yang periodik dan melakukan pengiriman sekaligus pengambilan barang. Terdapat batasan waktu oleh perusahaan dan batasan kapasitas kendaraan. Model PVRPSPD yang diterapkan disesuaikan dengan kondisi pada perusahaan. Selain itu pada penelitian ini dikembangkan prosedur Genetic Algorithm untuk mendapatkan solusi yang mendekati optimal dan waktu menghasilkan solusi (run time) yang cepat. Genetic Algorithm dirancang untuk mendapatkan solusi total biaya pengiriman pada kasus perusahaan. Pada prosedur ini digunakan crossover dan mutasi untuk mendapatkan rute alternatif yang baru sehingga dapat dibandingkan dengan rute terbaik saat ini. Genetic Algorithm yang diusulkan digunakan untuk menyelesaikan skenario pada kasus perusahaan. Kata kunci: VRP, PVRPSPD, Genetic Algorithm, total biaya pengiriman

PENGEMBANGAN MODEL PERIODIC VEHICLE ROUTING PROBLEM WITH SIMULTANEOUS PICKUPS AND DELIVERIES

Faromas Timor Distribution Atambua merupakan distributor yang mendistribusikan produk makanan dan minuman dari beberapa pabrik ternama di Indonesia, seperti PT. Sinar Sosro. Aktivitas pengiriman perusahaan terdiri dari pengiriman produk sekaligus mengambil barang yang dikembalikan berupa botol kosong. Produk yang dikirimkan dan diambil terdiri dari beberapa jenis. Strategi distribusi perusahaan adalah kanvas dimana proses distribusi produk berdasarkan pemesanan secara langsung saat melakukan kunjungan. Kunjungan ke konsumen memiliki frekuensi tertentu yaitu setiap satu kali seminggu. Permasalahan pengaturan rute pada perusahaan ini tergolong dalam Periodic Vehicle Routing Problem with Simultaneous Pickups and Deliveries (PVRPSPD). PVRPSPD merupakan salah satu variasi dari Vehicle Routing Problem (VRP) dengan mempertimbangkan waktu pengiriman yang periodik dan melakukan pengiriman sekaligus pengambilan barang. Terdapat batasan waktu oleh perusahaan dan batasan kapasitas kendaraan. Model PVRPSPD yang diterapkan disesuaikan dengan kondisi pada perusahaan. Selain itu pada penelitian ini dikembangkan prosedur Genetic Algorithm untuk mendapatkan solusi yang mendekati optimal dan waktu menghasilkan solusi (run time) yang cepat. Genetic Algorithm dirancang untuk mendapatkan solusi total biaya pengiriman pada kasus perusahaan. Pada prosedur ini digunakan crossover dan mutasi untuk mendapatkan rute alternatif yang baru sehingga dapat dibandingkan dengan rute terbaik saat ini. Genetic Algorithm yang diusulkan digunakan untuk menyelesaikan skenario pada kasus perusahaan. Kata kunci: VRP, PVRPSPD, Genetic Algorithm, total biaya pengiriman

Local search in physical distribution management

Physical distribution management presents a variety of decision making problems at three levels of strategic, tactical and operational planning. The importance of effective and efficient distribution management is evident from its associated costs. Physical distribution management at the operational level, which is considered in this paper is responsible for an important fraction of the total distribution costs. Not surprisingly, there is a growing demand for planning systems that produce economical routes. Enormous theoretical as well as practical advances have been made, in the last decade. Some of the resulting vehicle and scheduling models will be discussed in this paper, like vehicle routing problem with time window and the pickup and delivery problem with time window

Vehicle routing problem with simultaneous delivery and pickup and intermediary delivery

We address a variant of the Vehicle Routing Problem with Backhauls where delivery of the goods picked up from one node to another is allowed along the same vehicle route. The remaining goods in the vehicle are transported back to the depot. Two objectives exist: the primary one is to minimize the total distance traveled; the secondary is to maximize intra-route deliveries. To achieve these goals, we propose a hybrid metaheuristic which consists of an Ant Colony Optimization algorithm for the route construction and a Tabu Search algorithm for the route improvement. To test the performance of our approach, we generate benchmark data based on the well-known problem instances in the literature. Since the variant presented in this paper has not been addressed previously in the literature, only benchmark results with respect to the first objective are available. For this dual objective problem, we attempt to generate a Pareto curve for different levels of the first objective to investigate the trade-off between the two objective functions

Waste Collection Vehicle Routing Problem: Literature Review

Waste generation is an issue which has caused wide public concern in modern societies, not only for the quantitative rise of the amount of waste generated, but also for the increasing complexity of some products and components. Waste collection is a highly relevant activity in the reverse logistics system and how to collect waste in an efficient way is an area that needs to be improved. This paper analyzes the major contribution about Waste Collection Vehicle Routing Problem (WCVRP) in literature. Based on a classification of waste collection (residential, commercial and industrial), firstly the key findings for these three types of waste collection are presented. Therefore, according to the model (Node Routing Problems and Arc Routing problems) used to represent WCVRP, different methods and techniques are analyzed in this paper to solve WCVRP. This paper attempts to serve as a roadmap of research literature produced in the field of WCVRP

Factory Gate Pricing: An Analysis of the Dutch Retail Distribution

Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution. Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers. Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings. A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector. Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation