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Optimizing Distribution Network Models for a Fruit Trading Company in Thailand: A Comparative Study Using Linear Programming and Optimization
Author(s)
Akkawuttiwanich, P.
Yenradee, P.
Horng, S.
Pichpibul, T.
Date Issued
January 1, 2023
Type
Conference Paper
Abstract
This research investigates the distribution network model of a fruit trading company in Thailand, with a specific focus on the problem of excessive travel distances and vehicle requirements in the company's existing distribution system. Linear programming and optimization techniques are used to improve the distribution network model and to satisfy the daily demand. Results are compared between the current distribution scenario and the optimized model. The computational analysis reveals a significant 21.8% reduction (802 kilometers) in total traveling distance and a 33.33% decrease in the number of vehicles required. Additionally, a comprehensive cost analysis is proposed, incorporating fuel costs, CO2 emissions, and overtime expenses, which were previously overlooked. This research offers valuable insights into the potential benefits of optimization, including cost savings and environmental impact reduction, providing a practical template for managing distribution networks, reducing reliance on ad hoc practices, and fostering a sustainable business model to enhance competitiveness in a challenging market.
Citation
2023 IEEE International Conference on Industrial Engineering and Engineering Management Ieem 2023, 588-592, 2023