Advances in Consumer Research
Issue:6 : 1124-1129
Original Article
A comprehensive study on Minimizing Logistics Cost in the Retail Supply Chain of Thoothukudi District Using Linear Programming Models
 ,
1
Assistant Professor of Commerce Kamaraj College (Autonomous), Thoothukudi
2
Assistant Professor of Mathematics, Kamaraj College (Autonomous),Thoothukudi.
Abstract

Higher logistics costs are prevalent among retail supply chains within the Thoothukudi district due to inefficient routing and an imbalance in distribution as well as low levels of vehicle or warehouse utilization. This paper investigates whether or not implementing a linear programming (LP) approach could decrease logistics costs through restructuring of goods flows from central warehouses to retail outlets within all areas of the Thoothukudi District. A survey was conducted in major towns and taluks throughout the district, including Thoothukudi (City), Kovilpatti, Srivaikuntam, Vilathikulam, Ettayapuram, and Ottapidaram. Data from the survey included shipment volume, demand patterns of retail outlets, distance between warehouse and store; capacity of vehicles employed by the company, and cost per Km/load. For each of the nodes used as a warehouse (or distribution centre) we looked at either fictional or real-world depot locations close to the Thoothukudi city port area; we also investigated geographic depots located in the Kovilpatti and Ettayapuram corridor, both have been identified as common logistic hubs for many companies servicing retail outlets in the region. From all of this collected information we developed a linear programming model to minimize total cost (including transportation + handling + warehousing) within the constraints of supply and demand, vehicle capacity, and the ability to create a viable route between warehouses and retail outlets in all parts of the district. The LP model provided optimal load distribution and calculations on alternative routing methods that when applied to the current supply chain operations in the district should generate savings of approximately 20%-30%..

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