Distribution network logistics for after -sale service
Abstract
This research explores the problems inherent in distribution network logistics, specifically on how to manage the flow of information and materials required for supporting products in the field. It focuses on the movement and storage of finished goods, typically after parts have entered the distribution network. Production planning for individual products obeys the aggregate production volume constraint defined at the preceding level. Both mathematical network and computer simulation models are proposed to be used. The mathematical network, for the most part, provides normative models for the more strategic decision. It addresses the design aspect of the distribution channel, i.e., the establishments of the distribution network and its associated flows. Two proposed heuristic procedures that determine the network structures and distribution strategies were inspired by the insights derived from the model. Distribution network simulation considers both strategic and operational decisions. It allowed investigating alternative scenarios in network structure and distribution strategies and their effect on customer service levels and inventory levels across all echelons. The quantified effects of different scenarios gave the financial investment justification. In addition, several popular business topics that are closely related to the network logistics, such as Point-of-Sale information, reverse logistics, and inventory sharing, are discussed in detail. The results from this research can be used to design and to evaluate distribution network systems, and to plan for the flow of material. It is equally suitable for testing and establishing different tactical inventory management strategies. This research is being conducted in collaboration with a large earthmoving equipment and diesel engine manufacturing company in the United States. The problem of interest is characterized by thousands of parts and products and a complex multiechelon distribution network. Many features of this corporation's distribution system are tailored to meet the unique characteristics of a capital intensive equipment company. The conclusions from this research are naturally linked to the particular case of this company. However, the issues and tradeoffs considered in this research are as important in other distribution channel networks. The proposed approach is more general and may be used in similar applications.
Degree
Ph.D.
Advisors
Tanchoco, Purdue University.
Subject Area
Industrial engineering
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