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Transportation Cost Analysis and Route Optimization in Multi-Echelon Distribution System
Subject area: Management and Commerce · Area of research: Supply Chain Management
Abstract
Multiechelon distribution systems involving different layers like suppliers, warehouses, and retailers are paramount to the management of the supply chain. The research work develops a model for the analysis of transportation costs at all these echelons besides route optimization with the aim of reducing the overall operational costs without sacrificing service levels. The integration of inventory and transport planning through MILP models will ensure timely delivery while reducing the costs of transportation and holding. Computational experiments prove the validity of the model as substantial savings in cost and improved efficiency in distribution are noted compared to traditional approaches.
References
[1] Multi-echelon multi-product distribution network considering capacitated vehicles
[2] Multi-echelon inventory management for a non-stationary capacitated distribution network
[3] Optimization of multi-echelon inventory deployment in a distribution system
[4] Joint optimization of distribution network design and two-echelon inventory control under stochastic demand and CO2 emission tax charges
[5] Vehicle Routing in Multi-Echelon Distribution Systems with Cross-Docks
[6] Dynamic Lot Sizing for Multi-Echelon Distribution Systems with Purchasing and Transportation Price Discounts
[7] Designing a multi-echelon closed-loop supply chain with disruption in the distribution centers under uncertainty
[8] Modeling and Optimization of Multi-echelon Transportation systems-a hybrid approach
How to cite this paper
@article{1712596,
author = {Devineedi Yaswanth Kumar, Dr. Kanagal Anusha},
title = {Transportation Cost Analysis and Route Optimization in Multi-Echelon Distribution System},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {9},
number = {6},
pages = {150-152},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1712596.pdf},
abstract = {Multiechelon distribution systems involving different layers like suppliers, warehouses, and retailers are paramount to the management of the supply chain. The research work develops a model for the analysis of transportation costs at all these echelons besides route optimization with the aim of reducing the overall operational costs without sacrificing service levels. The integration of inventory and transport planning through MILP models will ensure timely delivery while reducing the costs of transportation and holding. Computational experiments prove the validity of the model as substantial savings in cost and improved efficiency in distribution are noted compared to traditional approaches.},
month = {December},
doi = {https://doi.org/10.64388/IREV9I6-1712596}
}