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Distribution Allocation

In: International Operations Management: Concepts and Applications

Author

Listed:
  • Chung Lai Johnny Wan

    (University of Wales Trinity Saint David)

  • Yulan Wang

    (The Hong Kong Polytechnic University)

Abstract

A transportation model is introduced in this chapter. The model helps the supply chain decision-maker plan the distribution of a product from the plants to the end customers through warehouses and distribution centers. This chapter considers two different scenarios: one where the total supply is sufficient to fulfill all customer demands and the other where the total supply is insufficient to fulfill all customer demands. In the latter case, a rational game is required where a proportional allocation rule is adopted. To find the optimal cost, a total cost function is constructed as the objective function, subject to capacity constraints. The objective function and the constraints are then input into the MS Solver to generate the optimal solution.

Suggested Citation

  • Chung Lai Johnny Wan & Yulan Wang, 2025. "Distribution Allocation," Springer Texts in Business and Economics, in: International Operations Management: Concepts and Applications, chapter 8, pages 127-138, Springer.
    • Handle: RePEc:spr:sptchp:978-981-96-6665-2_8
    DOI: 10.1007/978-981-96-6665-2_8
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