Development of a Model to Optimize the Supply Chain Management and it's Application

Abstract

The mam objective of this research is to develop a mathematical model for supply chain transportation costs. This model consider the real time data of the transportation cost incurring elements which helps in achieving optimization. Though it has been case studied for a particular company but it's been generalized for all aspects of supply chain network under some specific conditions. In this research Theory of Constraint (TOC) has been applied to identify the main constraints to its goal. The main constraint are found supply chain transportation cost which significantly impact on supply chain profit. Thinking process has been developed to propose a conceptual model regarding the constraints. The case study has been performed for 30 days and found 32.68% better results for one complete transportation cycle compared to existing transportation modes. The ways the model optimize the transportation cost by managing vehicle route, fleet size and number of moves throughout the transportation network. Finally, this model offering significant results in throughput accounting of supply chain transportation that leads to optimize overall supply chain costs.