Logistics Management

Logistics Cost Optimization at L& ampere;T, galvanising and Automation Division Project Report Contact soulfulness from L&T (E&A) Mr. Narendra U. Jain old Executive Group 5 Aditi Sinha Kamalesh Kumar Chaudhary Pragya Jain Prahlad Kushwaha Sayan Gupta Someswar Basak Executive succinct traditionally the company has been following the Hub and Spoke, Centrally stock and institutionalise freightage models. Hub and spoke model constitutes for about 62 % of periodical gross sales value. This leads to signifi flockt 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 trim down responsiveness. This also increases the transportation exist which accounts for lions share of the logistics apostrophize. The company relies on third party logistics companies for all transportations. from each one stockist is assigned to the nigh spo ke. Orders are placed by the stockists on any of the 6 working days in the week. The conveyor dispatches the material to the respective(prenominal) stockist the nearest warehouse. The logistics company uses their own logic, knowledge and put through to emphasize to minimize the transportation cost. In most of the cases enough 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 go aim at the WSS and the delivery date at the WSS becomes unpredictable. vigilance valued to improve the service level at the different stockists a! nd take up the system more predictable. Also optimise 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 such that the total cost of transportation is minimized. In literature it...If you fatality to get a full essay, order it on our website: OrderCustomPaper.com

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