A profitability and area coverage optimization model for a three-level distribution network
Date of Publication
2009
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Industrial Engineering
Subject Categories
Industrial Engineering
College
Gokongwei College of Engineering
Department/Unit
Industrial and Systems Engineering
Thesis Adviser
Dennis Beng Hui
Defense Panel Member
Bryan O. Gobaco
Abstract/Summary
In most studies, distributors have been given less attention as compared to what is given to the host company. This study aims to develop an optimization model for the profitability of both the distributor center and the distributor while taking into account the maximum area coverage (retailers served) and distributor allocation in a multi-level distribution network.
In order to address this problem, a mixed integer nonlinear programming model was formulated with a multi-objective function. The first objective function maximizes the profit of both the distributor center and distributor while the second objective function maximizes the area coverage of the network.
The model was translated into the General Algebraic Mathematical Model System language. The model was able to capture the logical and expected behavior, and was able to make decisions that maximized the profit of the major stakeholders in the network while maximize the area coverage. General equations were formulated, by a scaled down model of four distributor center warehouses and distributors and six retailers was used to validate the model reaction.
Through the use of Design of Experiments, the significant factors affecting the model were determined. The analyses of the significant factors were evaluated using the Response Surface Methodology. Parameter combinations from the handling cost, retailer demand, and operational capacity of the distributors showed that increasing area coverage (number of retailers served) does not always translate to higher profit.
Abstract Format
html
Language
English
Format
Accession Number
TU15278
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
172 leaves : ill. ; 28 cm.
Keywords
Business planning--Mathematical models; Planning --Mathematical models; Mathematical optimization; System design
Recommended Citation
Gamboa, J., Nocom, J. C., & Tee, J. D. (2009). A profitability and area coverage optimization model for a three-level distribution network. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/6475
