Decision Analysis Of Chemical Company’s Logistics Distribution

Textile chemical industry lies in the upstream of the entire textile industry.The price of downstream fabric and garment is constrained by the end-user demand,while the stricter environmental requirement and the increasing labor cost pushed up the manufacturing cost.The above challenges forced the textile chemical company to take actions to control cost.Company A is one of those,and worse situation is that the company got more issues about cost.Its logistic cost from North China warehouse to South China market is increasing dramatically these years,and meanwhile the company received continuous complaints from South China customers for slow delivery.The thesis analyses the company’s logistic problem with the view of linear programing.For addressing the logistic problems of cost and efficiency,two solutions from two different respects of logistic system were provided.The delivery solution from the aspect of distributors that brought in another large-scale LTL(Less-than-Truck-Load)distributor to share the delivery service for South China market with the original normal distributor,which showed positive outcomes than the original practice.Logistic network allocation solution from the aspect of distribution network,that analyzed the total cost and delivery efficiency of three alternatives of network allocations,which showed that setup a warehouse in Guangzhou would bring forth best performance.With the overall consideration of the constraints of cost and efficiency of the distribution system,the thesis provides global integrated solution on the basis of linear programing,which not only maximizes customers’ utility,but also minimizes company’s cost,is a win-win strategy.