Designing an Integrated Distribution System at DowBrands, Inc

E. Powell Robinson, Li-Lian Gao and Stanley D. Muggenborg
Additional contact information
E. Powell Robinson: Department of Business Analysis and Research, College of Business Administration, Texas A&M University, College Station, Texas 77843-4217
Li-Lian Gao: Department of Management, School of Business, Hofstra University, Hempstead, New York 11550
Stanley D. Muggenborg: Logistics Planning, DowBrands, Inc., PO Box 68511, Indianapolis, Indiana 46268

Interfaces, 1993, vol. 23, issue 3, 107-117

Abstract: Merging two independent distribution systems into an integrated whole poses significant challenges and opportunities for managers. Not only must they analyze the trade-offs among facility, inventory, and transportation costs, but they must also consider customer-service issues. We developed an optimization-based decision support system (DSS) for designing two-echelon, multi-product distribution systems and applied it to a problem facing DowBrands, Inc. The DSS provided valuable insight into the problem's cost and service trade-offs. Savings in logistics arising from its application are conservatively estimated to be $1.5 million per year.

Keywords: facilities/equipment planning: location; industries: consumer products (search for similar items in EconPapers)
Date: 1993
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