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Redesign Of The Supply Chain Of A Restaurant Franchise In The Food Industry

Author

Listed:
  • Erin Chancey
  • Jose Luis Martinez Flores
  • Maricarmen Baez Palma
  • Omar David Badillo Valenzuela
  • Maria Arlethe Sanchez Cabrera

Abstract

This research analyzes the problem of facility location and vehicle routing for an efficient logistics system in a practical case study application. It is intended to redesign the logistics network of a franchise company in the food industry in the city of Puebla, Puebla (Mexico). First, facility location is analyzed and two scenarios are presented, installing one new distribution center, and installing two new distribution centers, by the means of the P-median model. Subsequently, a new distribution route between the depots (distribution centers) and demand points (restaurant franchises) will be proposed by means of a Capacitated Vehicle Routing Problem, to satisfy demand and operational constraints of the customer. The objective of this study is to minimize costs through a reduction in delivery times and distances. Exact facility locations are presented along with a vehicle route scheduling, followed by a cost analysis to help in the ultimate decision of the logistics network redesign

Suggested Citation

  • Erin Chancey & Jose Luis Martinez Flores & Maricarmen Baez Palma & Omar David Badillo Valenzuela & Maria Arlethe Sanchez Cabrera, 2016. "Redesign Of The Supply Chain Of A Restaurant Franchise In The Food Industry," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 10(2), pages 103-111.
    • Handle: RePEc:ibf:gjbres:v:10:y:2016:i:2:p:103-111
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    More about this item

    Keywords

    Facility Location; P-median; Capacitated Vehicle Routing Problem; Logistics; Distribution;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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