Evaluating cost-to-serve for a retail supply chain | IEEE Conference Publication | IEEE Xplore

Evaluating cost-to-serve for a retail supply chain


Abstract:

Driven by decreasing inventory storage space in stores and a corresponding need to increase delivery frequency, a major retailer is considering adding cross dock nodes, b...Show More

Abstract:

Driven by decreasing inventory storage space in stores and a corresponding need to increase delivery frequency, a major retailer is considering adding cross dock nodes, between distribution centers and stores, to its supply chain network. Currently, distribution centers serve stores directly. The retailer would like to understand if introducing an additional node allows for cost-effectively increasing delivery frequency. In the proposed scenario, the additional node would receive products from both the distribution center and upstream suppliers to serve the stores. Implemented as a discrete-event simulation, this cost-to-serve model compares the scenarios by applying costs to simulated logistics events and resource levels. Results suggest introducing new nodes is cost neutral, even considering the reduced transportation costs.
Date of Conference: 07-10 December 2014
Date Added to IEEE Xplore: 26 January 2015
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Conference Location: Savannah, GA, USA

References

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