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Distribution Optimization by Means of Break Quantities: A Case Study

  • Roel Nass
  • Rommert Dekker
  • Willie van Sonderen-Huisman
Conference paper
Part of the Operations Research Proceedings book series (ORP, volume 1993)

Abstract

In this paper we present a case study on physical distribution optimization in Western Europe. Finished goods of a similar nature can be delivered either from distribution centres (DC’s) or form production service centres (PSC’s). The delivery time via a DC is shorter, but higher costs are involved. The selection between the two ways of delivery is based on the stockmix and on the Break Quantities (BQ’s). The set of products present at a DC is called the stockmix, which for efficiency reasons is restricted. If a product present at a DC is ordered and the order quantity is below the break quantity, the order is delivered from the DC and else form a PSC. The problem is to decide on the stockmix and the break quantity for each DC.

Keywords

Delivery Time Simulation Program Distribution Centre Order Quantity Similar Nature 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer-Verlag Berlin · Heidelberg 1994

Authors and Affiliations

  • Roel Nass
    • 1
  • Rommert Dekker
    • 1
  • Willie van Sonderen-Huisman
    • 1
  1. 1.Erasmus University RotterdamThe Netherlands

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