Logistics Network Design, Shipment Consolidation in a Distribution Centre – Warehouses – Customers Integrated Inventory Model

Abstract

This paper presents a study on multi level customers from three integrated network design and management of inventory to distribute from the various centres.  The distribution process is performed through the warehouses situated in different location.  Then the assignment will be shipped through the agent of the distribution centres.  The main objective of this inventory model is to reduce the transportation and handling costs in the logistics network.  This network design to establish the proper shipment model for clear the inventory and to provide an equivalent linear formulation. To prove effectiveness of   the model, the strategy for handling the inventory is also proposed to in this study.  The results also suggested that the distribution centres with high holding capacities should be arranged and scheduled to deliver their shipments.