Logistics Management

Logistics Cost Optimization at L& ampere;T, voltaic and Automation Division Project Report Contact person from L&T (E&A) Mr. Narendra U. Jain older Executive Group 5 Aditi Sinha Kamalesh Kumar Chaudhary Pragya Jain Prahlad Kushwaha Sayan Gupta Someswar Basak Executive summary traditionally the company has been following the Hub and Spoke, Centrally stock and make freightage models. Hub and spoke model constitutes for about 62 % of monthly gross sales value. This leads to signifi provoket 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 lessen responsiveness. This also increases the transportation exist which accounts for lions treat of the logistics apostrophize. The company relies on third party logistics companies for all transportations. to each one stockist is assigned to the nigh spoke. Orders are placed by th e stockists on any of the 6 working days in the week. The conveyer dispatches the material to the respective(prenominal) stockist the nearest warehouse. The logistics company uses their own logic, knowledge and live to emphasize to minimize the transportation cost. In most of the cases effective 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 emolument aim at the WSS and the delivery date at the WSS becomes unpredictable. counsel valued to improve the service level at the unl ike stockists and take up the system more p! redictable. Also hone 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 scattering 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 necessity to get a full essay, order it on our website: OrderCustomPaper.com

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