Inventory Management and Inbound Logistics Optimization for a Food Processing Company

Inventory Management and Inbound Logistics Optimization for a Food Processing Company

Bibliographic Details
Main Author: Zhou, Heng
Language:English
Published: University of Cincinnati / OhioLINK 2013
Subjects:
Industrial Engineering
Inbound Logistics
Safety Inventory
Consolidation Points
Transportation Network
Online Access:http://rave.ohiolink.edu/etdc/view?acc_num=ucin1384426173
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spelling ndltd-OhioLink-oai-etd.ohiolink.edu-ucin13844261732021-08-03T06:20:21Z Inventory Management and Inbound Logistics Optimization for a Food Processing Company Zhou, Heng Industrial Engineering Inbound Logistics Safety Inventory Consolidation Points Transportation Network Inbound logistics can be described as a process where large sets of raw materials from numerous vendors are transported to their designated factories to fulfill the production needs. Traditionally, more emphasis has been put on outbound logistics management. Inbound logistics share the same important role as the outbound one since it'll determine the raw material purchasing price from each vendor for the company. This work focuses on the inventory management and network distribution design part by measuring the new inventory holding policy and transportation strategy adopted for a food processing company in the Midwest. The current inventory management situation of the company is that too much safety inventory amount has been carried. Regarding to the inbound logistics, the raw material vendors seldom do the freight consolidation, as a result more trucks have to be dispatched to fulfill the production needs of the factories. First a normal distribution inventory consumption model will be introduced to calculate the optimal safety inventory amount in the inventory management part. Next in the transportation network design part, Gurobi linear optimization tool will be used to determine the best consolidation location for each particular material. A "Grouping method" based on different constraints will be adopted to transport goods from consolidation points to their designated factories.After the implementation of the new inventory management strategies, the new safety inventory amount has been dramatically cut down which will lead to a much lower inventory holding cost for the company. Also through the consolidation and grouping processes for the raw material, we are able to fully utilize the capacity of each truck and dramatically decrease the truck dispatching times to further lower the inbound transportation cost for the company.In this study, we are facing up to several new constraint like the goods with different temperature cannot be transported together which has seldom been done before. Also to treat either of the factories as a consolidation point is a feasible method to avoid extra transshipment point building cost. This study deals the inventory management and transportation design part separately. In the future study, we may try to integrate them into a single problem to further discover their interaction. 2013 English text University of Cincinnati / OhioLINK http://rave.ohiolink.edu/etdc/view?acc_num=ucin1384426173 http://rave.ohiolink.edu/etdc/view?acc_num=ucin1384426173 unrestricted This thesis or dissertation is protected by copyright: all rights reserved. It may not be copied or redistributed beyond the terms of applicable copyright laws.
collection NDLTD
language English
sources NDLTD
topic Industrial Engineering
Inbound Logistics
Safety Inventory
Consolidation Points
Transportation Network
spellingShingle Industrial Engineering
Inbound Logistics
Safety Inventory
Consolidation Points
Transportation Network
Zhou, Heng
Inventory Management and Inbound Logistics Optimization for a Food Processing Company
author Zhou, Heng
author_facet Zhou, Heng
author_sort Zhou, Heng
title Inventory Management and Inbound Logistics Optimization for a Food Processing Company
title_short Inventory Management and Inbound Logistics Optimization for a Food Processing Company
title_full Inventory Management and Inbound Logistics Optimization for a Food Processing Company
title_fullStr Inventory Management and Inbound Logistics Optimization for a Food Processing Company
title_full_unstemmed Inventory Management and Inbound Logistics Optimization for a Food Processing Company
title_sort inventory management and inbound logistics optimization for a food processing company
publisher University of Cincinnati / OhioLINK
publishDate 2013
url http://rave.ohiolink.edu/etdc/view?acc_num=ucin1384426173
work_keys_str_mv AT zhouheng inventorymanagementandinboundlogisticsoptimizationforafoodprocessingcompany
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