One of the main issues characterizing the large-scale retail trade (LSRT) distribution is the relatively high transportation costs compared to profit margins. The complexity of non-integrated supply chains worsens this problem because the actors – wholesalers, third-party logistics providers and retailers – may reasonably have different and conflicting aims. Furthermore, due to the numerous operational field-specific peculiarities, it is not possible to straightforwardly apply those consolidated operations management models which have been conceived in other industrial contests. Among these, the classical models for defining the appropriate order size to minimize transportation costs seem not to be appropriate for the LSRT context. In this paper we propose an approach to compute the minimum order size for a network of retailers supplied by a single wholesaler, to obtain an overall transportation costs optimization through the increase of trucks saturation. Taking cue from literature review on optimization techniques in LSRT supply chain and logistics, and highlighting the context-specific constraints, we propose an heuristic approach which has been validated on the case of an Italian LSRT company.

Lucci, G., Schiraldi, M.m., Vincenzi, M. (2018). Choosing the minimum order size in large-scale retail trade distribution. In Proceedings of the Summer School Francesco Turco (pp.284-290). AIDI - Italian Association of Industrial Operations Professors.

Choosing the minimum order size in large-scale retail trade distribution

Lucci, G.;Schiraldi, M. M.;
2018-09-12

Abstract

One of the main issues characterizing the large-scale retail trade (LSRT) distribution is the relatively high transportation costs compared to profit margins. The complexity of non-integrated supply chains worsens this problem because the actors – wholesalers, third-party logistics providers and retailers – may reasonably have different and conflicting aims. Furthermore, due to the numerous operational field-specific peculiarities, it is not possible to straightforwardly apply those consolidated operations management models which have been conceived in other industrial contests. Among these, the classical models for defining the appropriate order size to minimize transportation costs seem not to be appropriate for the LSRT context. In this paper we propose an approach to compute the minimum order size for a network of retailers supplied by a single wholesaler, to obtain an overall transportation costs optimization through the increase of trucks saturation. Taking cue from literature review on optimization techniques in LSRT supply chain and logistics, and highlighting the context-specific constraints, we propose an heuristic approach which has been validated on the case of an Italian LSRT company.
23rd Summer School "Francesco Turco" - Industrial Systems Engineering 2018
Grand Hotel et des Palmes, ita
2018
AIDI
Rilevanza internazionale
contributo
12-set-2018
12-set-2018
Settore ING-IND/17 - IMPIANTI INDUSTRIALI MECCANICI
Settore ING-IND/35 - INGEGNERIA ECONOMICO-GESTIONALE
English
Distribution; Large Scale Retail Trade; Logistics; Transportation Costs; Business and International Management; Management of Technology and Innovation; Organizational Behavior and Human Resource Management; Strategy and Management1409 Tourism, Leisure and Hospitality Management; Management Science and Operations Research; Industrial and Manufacturing Engineering; Safety, Risk, Reliability and Quality; Waste Management and Disposal
http://www.summerschool-aidi.it/
Intervento a convegno
Lucci, G., Schiraldi, M.m., Vincenzi, M. (2018). Choosing the minimum order size in large-scale retail trade distribution. In Proceedings of the Summer School Francesco Turco (pp.284-290). AIDI - Italian Association of Industrial Operations Professors.
Lucci, G; Schiraldi, Mm; Vincenzi, M
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/211521
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