A Supply Chain Distribution Network Optimization Of W Company

The W Company multi-plant multi sales area distribution network optimization as themain Research content to seven sales regions to three factories, five categories of products,production costs, transportation costs storage costs, the production capacity of the plant,according to different the region, demand, product mix, combined with a variety ofproduction resource configuration to optimize the operating costs of the distribution network.The W distribution network of the company’s current situation analysis, combined withmarket demand forecasts, product supply program planning each sales region, theestablishment of the future optimization analysis model, production costs, transportation costs,storage costs, production capacity constraints, calculated sales volume and product mix forthe lowest variable distribution network cost model. Model using mixed integer linearprogramming methods, and by the calculation of the MS60software to get optimal results.The W management decisions are usually based on experience or simply sub-regionalmanagement mode, simple plant sales area to determine the distribution network managementmodel, significance of this study is to determine the optimal distribution network through thecalculation of the mathematical model, programs and costs, customer demand for the premise,based on the factory delivery costs and the ability to determine the lowest cost of supply chainmanagement mode, Calculated through the instance data,optimization results can be done toreduce the cost of distribution network of0.88%,the inventory turnover days reduced to30days from35of the world according to the sales forecast calculated. the application of themodel can be extended, when the number of customer demand, changes in product mix tocircumstances, adjust factory allocation of resources, thereby further reducing the cost of thesupply chain; well as a precondition to the business objectives, to provide a scientific basis forthe cost of budget management; improve management efficiency, calculated by the fast model,reduce management decision-making Cycle management, improve management efficiency.