IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v18y1988i6p92-104.html
   My bibliography  Save this article

Reducing Distribution Costs in a Two-Level Inventory System at Ciba-Geigy

Author

Listed:
  • Ulrich Fincke

    (Operations Research, Ciba-Geigy Ltd., CH-4002 Basle, Switzerland)

  • Willem Vaessen

    (Operations Research, Ciba-Geigy Ltd., CH-4002 Basle, Switzerland)

Abstract

Ciba-Geigy constructed a simulation model of a two-level inventory and distribution system to develop and analyze strategies for reducing overall distribution costs. The model covers all stages of distribution, beginning with production planning and ending with delivery of goods to customers in different countries. Besides considerable expected reductions in distribution costs, the model led to insight as to where to concentrate future efforts to reduce the capital tied up in the distribution chain. It also showed that a planned, highly automated inventory and distribution center removes the incentives for using a distribution strategy that “pushes” finished goods to the group companies immediately after production.

Suggested Citation

  • Ulrich Fincke & Willem Vaessen, 1988. "Reducing Distribution Costs in a Two-Level Inventory System at Ciba-Geigy," Interfaces, INFORMS, vol. 18(6), pages 92-104, December.
    • Handle: RePEc:inm:orinte:v:18:y:1988:i:6:p:92-104
    DOI: 10.1287/inte.18.6.92
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.18.6.92
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.18.6.92?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:18:y:1988:i:6:p:92-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.