APPROACH OF JUST-IN-TIME DISTRIBUTION REQUIREMENT’S PLANNING FOR SUPPLY CHAIN MANAGEMENT

ABSTRACT

The distribution of finished goods to customers plays an important role in supply chain management. This paper introduces an approach that takes care of multi-warehouse and multi-retailer scenarios. In order to pull material through a supply chain effectively, we proposed a just-in-time distribution requirements planning system under the limited supply capacity. The aim is to establish an optimal distribution requirements planning model to minimize the total cost of manufacturing and transportation as well as the earliness/tardiness penalty in meeting retailer’s requirements under limited warehouse capacity. Using mathematical deduction, the model can be translated into a linear programming problem and solved by a simplex procedure. The computational results have shown that the proposed approach can offer more effective distribution requirements plans. Taking the small part of the chain which consists of elements of chain right from very next step after production, which contains elements such as ware-houses stocking goods ready for distribution and sale, distributors, no of warehouses, no of retailers, transportation management etc. Also, we take Engine oil as product and experiment the effect of JUST-IN-TIME distribution requirements planning for supply chain and its effects to bring about an effective flow of goods through seamless pipeline along with the integrated flow of logistics and its cost effectiveness. The experiment is done as shown.

Introduction

As industrial environment becomes more competitive, supply chain management (SCM) has attracted the attention of many researchers. A supply chain (SC) is generally viewed as a network of facilities that performs the procurement of raw material, its transformation into intermediate and end-products for the customers with the use of two major control philosophies: the ‘‘push’’ system and the ‘‘pull’’ system .It exists in both service and manufacturing organizations, although the complexity of an SC varies greatly from industry to industry and firm to firm.

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