Minimum cost package size analysis in the supply chain: A case study in Colombia (Spanish)

Minimum cost package size analysis in the supply chain: A case study in Colombia (Spanish)

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October 3, 2015

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  • Author(s):
    Mejia-Argueta, C., Soto-Cardona, O. C., Gamez-Alban, H. M. & Moreno-Moreno, J. P.
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  • Appeared In: Estudios Gerenciales
  • Volume: 31, 2015
  • Issue: 134
  • Pages: 111 – 121

Abstract

  • This paper presents a case study of a Colombian consumer packaged goods company, in order to minimize the costs related to its logistics operations by using different sizes of packages. Two optimization models were formulated: the first model is aimed at determining the five secondary package sizes that diminish the need to open closed packages to meet customer orders. The second model defines which of these packages are the most appropriate to serve each sales channel while minimizing the total logistics cost. The analysis shows useful findings on how optimizing the secondary package sizes could change the costs along the supply chain, leading to an average savings of 8.2%.