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Designing an Integrated Distribution System at DowBrands, Inc

Author

Listed:
  • E. Powell Robinson

    (Department of Business Analysis and Research, College of Business Administration, Texas A&M University, College Station, Texas 77843-4217)

  • Li-Lian Gao

    (Department of Management, School of Business, Hofstra University, Hempstead, New York 11550)

  • Stanley D. Muggenborg

    (Logistics Planning, DowBrands, Inc., PO Box 68511, Indianapolis, Indiana 46268)

Abstract

Merging two independent distribution systems into an integrated whole poses significant challenges and opportunities for managers. Not only must they analyze the trade-offs among facility, inventory, and transportation costs, but they must also consider customer-service issues. We developed an optimization-based decision support system (DSS) for designing two-echelon, multi-product distribution systems and applied it to a problem facing DowBrands, Inc. The DSS provided valuable insight into the problem's cost and service trade-offs. Savings in logistics arising from its application are conservatively estimated to be $1.5 million per year.

Suggested Citation

  • E. Powell Robinson & Li-Lian Gao & Stanley D. Muggenborg, 1993. "Designing an Integrated Distribution System at DowBrands, Inc," Interfaces, INFORMS, vol. 23(3), pages 107-117, June.
    • Handle: RePEc:inm:orinte:v:23:y:1993:i:3:p:107-117
    DOI: 10.1287/inte.23.3.107
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    Citations

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    Cited by:

    1. Sabri, Ehap H. & Beamon, Benita M., 2000. "A multi-objective approach to simultaneous strategic and operational planning in supply chain design," Omega, Elsevier, vol. 28(5), pages 581-598, October.
    2. Vidal, Carlos J. & Goetschalckx, Marc, 1997. "Strategic production-distribution models: A critical review with emphasis on global supply chain models," European Journal of Operational Research, Elsevier, vol. 98(1), pages 1-18, April.
    3. Burcu B. Keskin & Halit Üster, 2012. "Production/distribution system design with inventory considerations," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(2), pages 172-195, March.
    4. Jean-François Cordeau & Federico Pasin & Marius Solomon, 2006. "An integrated model for logistics network design," Annals of Operations Research, Springer, vol. 144(1), pages 59-82, April.
    5. Klose, Andreas & Drexl, Andreas, 2005. "Facility location models for distribution system design," European Journal of Operational Research, Elsevier, vol. 162(1), pages 4-29, April.
    6. Larry J. LeBlanc & James A. Hill & Gregory W. Greenwell & Alexandre O. Czesnat, 2004. "Nu-kote’s Spreadsheet Linear-Programming Models for Optimizing Transportation," Interfaces, INFORMS, vol. 34(2), pages 139-146, April.

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