STREAMLINING OPERATIONS: OPTIMIZING INVENTORY AND INTERNAL LOGISTICS IN SUPPLY CHAIN NODES

Abstract

This study delves into the intricacies of managing inventory and internal logistics within a specific node of the supply chain, focusing on a Distribution Centre (DC). The main objectives are twofold: firstly, to evaluate the effectiveness of different inventory control policies across various operational scenarios; and secondly, to minimize Internal Logistic Costs (ILCs) by examining critical parameters such as the frequency of incoming/outgoing trucks from suppliers/to retailers, and the availability of forklifts and lift trucks. The overarching goal is to elevate the service level provided to final retailers while efficiently allocating internal resources. To achieve these objectives, a simulation model of an actual DC is meticulously constructed. By implementing this model, the study aims to simulate real-world scenarios and analyze the outcomes using rigorous statistical methods such as Analysis of Variance (ANOVA) and graphical tools. Through this analysis, insights can be gleaned into the performance of different inventory control policies and their implications on internal logistics costs. Ultimately, this research endeavors to provide practical recommendations for enhancing operational efficiency and cost-effectiveness within the supply chain node, thereby benefiting the broader logistics ecosystem.