Competitiveness based on logistic management: a real case study
- 701 Downloads
An efficient and effective logistic system is a strategic objective in any productive business. This paper presents a real case study of a routing problem in a food industry firm. This problem is solved as a Vehicle Routing Problem (VRP) using the Neural Network (NN) and Tabu Search (TS) algorithms. A customer selection based on a profitability analysis was carried out. The aforementioned algorithms were then applied, leading to a considerable reduction in the total logistic costs. This resulted in an improvement in the company’s competitiveness and profit.
KeywordsLogistic management Tabu search Neural network Vehicle routing problem
- Abdolhamid, T., Somhon, S., & Enkawa, T. (1997). A competitive neural network algorithm for solving vehicle routing problem. Computers & Operations Research, 33, 473–476. Google Scholar
- Christopher, M. (2011). Logistics and supply chain management: creating value-adding networks. Edinburg: Pearson Education. Google Scholar
- Dorota, K., & Michal, K. (2007). Activity-based costing and customer profitability. Cost and Management, 21, 18–25. Google Scholar
- Giblin, J. (2001). Transportation: the forgotten link in the supply chain. http://www.ascet.com/html.
- Hopfield, J. J., & Tank, D. W. (1985). ‘Neural’ computation of decisions in optimization problems. Biological Cybernetics, 52, 141–152. Google Scholar
- Horngren, C. T., Foster, G., & Datar, S. M. (2001). Cost accounting: a managerial emphasis. Upper Saddle River: Prentice Hall. Google Scholar
- Hsu, C. L., & Feng, S. (2003). Vehicle routing problem for distributing refrigerated food. Journal of the Eastern Asia Society for Transportation Studies, 5, 2261–2272. Google Scholar
- Kaplan, R. S., & Cooper, R. (2000). Cost & effect: using integrated cost systems to drive profitability and performance. Boston: Harvard Business School Press. Google Scholar
- Lysons, K., & Gillingham, M. (2005). Purchasing and supply chain management. London: Prentice Hall. Google Scholar
- Mittal, V., Sarkees, M., & Murshed, F. (2008). The right way to manage unprofitable customers. Harvard Business Review, 86, 95–102. Google Scholar
- Sivanandam, S. N., Dumathi, S., & Deepa, S. N. (2006). Introduction to neural networks using MATLAB 6.0. Delhi: McGraw Hill. Google Scholar