The transportation cost of goods is the highest day-to-day operational cost associated with the
food industry sector. A company may be able to reduce logistics cost and simultaneously improve service
level by optimizing of distribution network. In reality, a company faces problems considering capacitated
transportation facilities and time constraint of delivery. In this paper, we develop a new model of order
fulfillment physical distribution to minimize transportation cost under limited of transportation facilities.
The first step is defined problem description. After that, we formulate a integer linear programming model
for the single-warehouse, multiple-agents considering varying of transportation facilities in multi-period
shipment planning. We analyze problems faced by company when should decide policy of distribution due to
varying of transportation facilities in volume, type of vehicle, delivery cost, lead time and ownership of
facilities. We assumed transportation costs are modeled with a linear term in the objective function. Then,
we solve the model with Microsoft Excel Solver 8.0 Version. Finally, we analyze the results with considering
amount of transportation facilities, volume usage and total transportation cost.
Keywords: physical distribution, shipment planning, integer linear programming, transportation cost,
transportation facilities