Distribution Allocation

Chung Lai Johnny Wan and Yulan Wang
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Chung Lai Johnny Wan: University of Wales Trinity Saint David
Yulan Wang: The Hong Kong Polytechnic University

Chapter 8 in International Operations Management: Concepts and Applications, 2025, pp 127-138 from Springer

Abstract: Abstract A transportation model is introduced in this chapter. The model helps the supply chain decision-maker plan the distribution of a product from the plants to the end customers through warehouses and distribution centers. This chapter considers two different scenarios: one where the total supply is sufficient to fulfill all customer demands and the other where the total supply is insufficient to fulfill all customer demands. In the latter case, a rational game is required where a proportional allocation rule is adopted. To find the optimal cost, a total cost function is constructed as the objective function, subject to capacity constraints. The objective function and the constraints are then input into the MS Solver to generate the optimal solution.

Date: 2025
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DOI: 10.1007/978-981-96-6665-2_8

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