Logistics Management

Logistics Cost Optimization at L& ampere;T, galvanic and Automation Division Project Report Contact individual from L&T (E&A) Mr. Narendra U. Jain major(postnominal) Executive Group 5 Aditi Sinha Kamalesh Kumar Chaudhary Pragya Jain Prahlad Kushwaha Sayan Gupta Someswar Basak Executive stocky traditionally the company has been following the Hub and Spoke, Centrally stock and govern freightage models. Hub and spoke model constitutes for about 62 % of monthly gross sales value. This leads to signifi screwingt quantities of inventory build up in the warehouses. withal the physical distance travelled by the products is self-aggrandizing, resulting in large expatriation lead times and reduced responsiveness. This also increases the transportation exist which accounts for lions shell out of the logistics apostrophize. The company relies on third party logistics companies for all transportations. severally stockist is assigned to the nigh spoke. Orders are placed by the stockists on any of the 6 working days in the week. The conveyer belt dispatches the material to the respective(prenominal) stockist the nearest warehouse. The logistics company uses their own logic, knowledge and watch to emphasize to minimize the transportation cost. In most of the cases broad(a) motortruck Load (FTL) is not achieved.

This leads to the delay in transportation, because the transporter waits gutter he gets a FTL on that route. This significantly affects the receipts aim at the WSS and the delivery date at the WSS becomes unpredictable. heed valued to improve the s ervice level at the unhomogeneous stockists! and take up the system more predictable. Also perfect the transportation cost from plants to the spokes without compromising the service levels. The problem can be split into two stages. The first stage consists of analysing and optimising the distribution network from plants process the spokes. The second stage consists of forming dynamic clusters of the stockist much(prenominal) that the total cost of transportation is minimized. In literature it...If you destiny to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper