Title: Optimisation of distribution process in a continuous credit based consumer goods supply chain

Authors: Antony Michael Raj, P. Shahabudeen

Addresses: Department of Mechanical Engineering, St Joseph's College of Engineering, Old Mamallapuram Road, Chennai-600119, India. ' Department of Industrial Engineering, College of Engineering, Anna University, Chennai-600025, India

Abstract: In this paper a financially safe and profitable approach is presented for the distributors of domestic companies| consumer goods in the developing countries. They face tough competition from the multi-national companies whose products have high reputation and well received by the consumers. One of the strategies for attracting the retailers is following the continuous credit supply policy in which the distributor supplies on credit and collects in number of installments. The Genetic Algorithm search technique is used to obtain an optimal replenishment policy to each retailer based on his demand and payment policy and the overall optimum value of average credit value the distributor can supply as multiples of number of weeks| demand. A numerical case of biscuits and confectionery products distributor is taken for study.

Keywords: fast moving consumer goods; FMCG; genetic algorithms; linear programming; replenishment policy; supply chain management; SCM; vendor managed inventory; VMI; developing countries; distribution process; continuous credit; supply policy; biscuits; confectionery products.

DOI: 10.1504/IJLSM.2006.009556

International Journal of Logistics Systems and Management, 2006 Vol.2 No.2, pp.142 - 159

Published online: 21 Apr 2006 *

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