D.W. Ellis & Associates Ltd. offers consulting services in distribution/logistics/transportation management, fleet management, dispatch rules and systems, and distribution modeling software.

DISTRIBUTION/TRANSPORTATION MANAGEMENT - A DEFINITION

The management of the selection, replacement, maintenance, scheduling and operation of distribution vehicles and processes for the maximum overall benefit of the organization.

A Typical Distribution System

• multiple points (locations) of production or purchase of products
• different products
• owned/leased/contracted fleet of distribution vehicles
• various vehicles types in the fleet
• different operating characteristics (costs, range, load) for each type of vehicle
• multiple distribution centers (locations) where product is stored
• many customers in different locations with different product requirements
• different transportation costs from production and distribution centers to customers
• vehicle restrictions to different customers

If your business includes at least some of these operating complexities, you could benefit from the analysis of your distribution/transportation systems.

• Should we produce or purchase product at other locations?
• Should we have other distribution centers?
• What products should be produced or purchased in what quantities at what locations?
• What products and in what volumes should be stored at what distribution centers?
• What products of what customers should be supplied from what production or distribution point?
• How many vehicles of each type should we have in our fleet?
• What vehicle should be used to move product to what customers?
• What route should each of the vehicles follow?
• How often should vehicles in our fleet be replaced?

If these questions are familiar to you, a distribution analysis will likely help you.

Linear programming is a tool that can optimize such a system. Given production and operating costs, fleet sizes, storage capacities, customer demand, etc., models can easily be constructed to identify the best operating strategy.

WAREHOUSING/LOADING/STORAGE FACILITIES

An integral part of any distribution system is the warehouse or storage facilities. It can be where products are:

• received, stored and shipped
• received, processed, stored and shipped
• produced, stored and shipped
• purchased, stored and consumed

The typical design and operating decisions for these warehouses/terminals are:

• how many loading/unloading docks should we have
• what should our yard look like to make vehicle movements efficient
• should we dedicate docks to loading or unloading or use them 'freely'
• should we have different priority for unloading or loading vehicles
• should our truck and rail facilities be integrated or separate
• what priority rules should we use to manage waiting fairly
• should we have crews who specialize in loading and unloading
• how many of the specialized loading/unloading equipment should we have
• how should we schedule in deliveries and pickups
• what guarantees can we make to our customers and drivers

In general, distribution/logistics/transportation analysis can help in the following areas.

• locations for production facilities
• locations for distribution centers
• distribution center design
• fleet composition
• fleet scheduling
• own, rent or contact fleet decisions
• vehicle replacement
• dispatch rules and systems
• route construction
• minimum cost distribution systems
• dial-a-ride

Simulation modeling is also a tool that can help significantly with the analysis of such a system. Please see our simulation animation demonstration examples of a distribution center in our Simulation page.

If you have questions or comments, please e-mail David Ellis.

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