Facility Location Placement Optimisation for Bagged Cement Distribution During the COVID-19 Pandemic

Authors

DOI:

https://doi.org/10.4186/ej.2023.27.7.75 Full article

Abstract

This study was based on a challenge that one of Thailand's cement companies encountered in 2021 as a result of fierce competition in the Northeastern region and falling market share during the COVID-19 pandemic. Without a doubt, the management of supply chains played an essential role in this issue. As a result, this research addressed the company's distribution strategy by attempting to determine a new location for the distribution centre to achieve two conflicting objectives at the same time, namely, minimising total transportation cost and maximising service level (delivery lead time reduction). For the problem at hand, a linear programming model was developed. Once different options were identified, the pros and cons of each approach were evaluated, and then the distribution strategy was altered to meet the actual conditions. It was discovered that changing distribution centres in some locations was a successful strategy for shortening delivery lead times with an opportunity to achieve a 22% improvement in service level while still controlling transportation expenses prior to arriving at the end customers not beyond the target at 15% increased from the current strategy.

Keywords:

facility location, distribution centre, cement, linear programming, COVID-19

Affiliations

  • Chayut Pacharatham Chulalongkorn University
  • Parames Chutima Chulalongkorn University; The Royal Society of Thailand

Corresponding author: Parames Chutima, parames.c@chula.ac.th

3102 1392

Author Biographies

  • Regional Centre for Manufacturing Systems Engineering, Chulalongkorn University, Thailand

  • Regional Centre for Manufacturing Systems Engineering, Chulalongkorn University, Thailand

    Department of Industrial Engineering, Faculty of Engineering, Chulalongkorn University, Thailand

    The Academy of Science, The Royal Society of Thailand, Thailand

    Human-Robot Collaboration and Systems Integration Research Unit, Faculty of Engineering, Chulalongkorn University, Thailand

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How to Cite

[1]
C. Pacharatham and P. Chutima, “Facility Location Placement Optimisation for Bagged Cement Distribution During the COVID-19 Pandemic”, Eng. J., vol. 27, no. 7, pp. 75–95, Jul. 2023, doi: 10.4186/ej.2023.27.7.75.

Citations

Published

2023-07-31

Issue

Section

Modern Engineering Technology