Abstract
This paper investigates the logistics network design for rice distribution of a 4-supplier, 3-warehouse, 14-customer distribution point network in the province of Sulawesi, Indonesia. An MIP model is formulated, with the objective of minimising the procurement, inventory, and transportation costs from supplier through to the warehouses and onto the distribution locations. Computational experiments are conducted using ILOG CPLEX Optimization Studio. Optimal solutions are found. Initial results suggest an achievement of economic and environmental sustainability through a cost reduction in the transportation cost from the supplier to the warehouses of 17.44%, and from warehouses to consumer distribution points by 5.68% respectively.
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We recognise the kind assistance of the Coordinating Ministry of Economic Affairs, Indonesia in supporting the data collection effort.
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Hanafi, R., Rusman, M., Goh, M., de Souza, R. (2019). Logistics Network Design for Rice Distribution in Sulawesi, Indonesia. In: Liu, X. (eds) Environmental Sustainability in Asian Logistics and Supply Chains. Springer, Singapore. https://doi.org/10.1007/978-981-13-0451-4_3
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DOI: https://doi.org/10.1007/978-981-13-0451-4_3
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