The Cost Minimization Model in Warehouse Distribution System
International Journal of Management and Fuzzy Systems
Volume 3, Issue 5, October 2017, Pages: 75-79
Received: Aug. 13, 2017; Accepted: Aug. 31, 2017; Published: Nov. 8, 2017
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Authors
Syed Abdul Rehman Khan, School of Economics and Management, Chang’an University, Xi’an, China
Yu Zhang, School of Economics and Management, Chang’an University, Xi’an, China
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Abstract
In today’s world, warehousing and distribution centres play a vital role to fulfil customer demand and requirement. Firms cannot ignore the importance of warehouse and distribution centres. In addition, firms are using DCs (distribution centres) and warehouses for valuation addition purposes such as, postponement strategies, break-bulking, consolidation, and packing and packaging etc. This research aim is to develop a model to reduce warehouse cost and increase or improved customer service. The results and discussions with personnel’s of distribution department seem to offer a lesson. It is that, though human distribution “optimizers” out of necessity, must concentrate their efforts on maintaining the most economical primary shipment transportation system, a mechanical “optimizer” like as MODS (model of optimizing distribution centres) is able to find out and determine the most economical system from the standpoint of whole the relevant costs to be considered.
Keywords
Warehousing, Distribution Centres, MODS, Transportation Routes
To cite this article
Syed Abdul Rehman Khan, Yu Zhang, The Cost Minimization Model in Warehouse Distribution System, International Journal of Management and Fuzzy Systems. Vol. 3, No. 5, 2017, pp. 75-79. doi: 10.11648/j.ijmfs.20170305.13
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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