Abstract

The effective and efficient management of logistic is a serious concern for every manufacturing firm. Competitive business environment of present scenario demands the firm to operate their logistic very efficiently and effectively. The project is based on a chemical firm which manufacture and supplies FMCG (Fast Moving Consumer Goods) products. It is found that the distribution expense of the firm is as high as it will count approximately thirty percentage of the product’s cost which is a major cause of concern for the firm. The project aims to propose a model which will reduce the distribution expense of the firm. In order to attain the goal a detailed study of the existing transportation system is done. A mathematical Mixed Integer Linear Programming (MILP) model considering the limitation and facilities there were formulated and solved using AMPL-CPLEX software. The distribution cost of current system and developed system is compared and it is found that the transportation mode of operation given by the model is better than existing system

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