DEVELOPMENT OF SPREADSHEET BASED DECISION SUPPORT SYSTEM FOR PRODUCT DISTRIBUTIONS

Product distribution is a complex process as it involves meeting requirements from several stake holders including the distributors and customers. The primary objective of product distribution process is meeting the customers’ demand as well as minimizing the cost incurred by the distributor. For...

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Main Authors: Mokhtar, Ainul Akmar, Muhammad, Masdi, A Majid, M Amin
Format: Conference or Workshop Item
Language:English
Published: 2009
Subjects:
Online Access:http://scholars.utp.edu.my/id/eprint/1805/
http://scholars.utp.edu.my/id/eprint/1805/1/493-498.pdf
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author Mokhtar, Ainul Akmar
Muhammad, Masdi
A Majid, M Amin
author_facet Mokhtar, Ainul Akmar
Muhammad, Masdi
A Majid, M Amin
author_sort Mokhtar, Ainul Akmar
building UTP Institutional Repository
collection Online Access
description Product distribution is a complex process as it involves meeting requirements from several stake holders including the distributors and customers. The primary objective of product distribution process is meeting the customers’ demand as well as minimizing the cost incurred by the distributor. For distributor that supports large number of customers, the available commercial softwares for optimizing and scheduling of product distribution are typically being used. However, these systems are complex, costly and require long processing time on a dedicated computer system. Thus, these commercial softwares are not practical for distributors that support small number of customers and as such the optimization and scheduling activities are usually done manually based on rule-of-thumb. This process is time consuming and the results may not be optimal. This paper presents a decision support system employing a two-step sequential approach for product deliveries. First is to determine the optimum carrier required to meet customers demand utilizing linear programming with the objective function to minimize the total distribution cost. Premium Solver Platform (PSP) is utilized to model the optimization problem. Second is to use multi-criteria decision making approach applying various physical and logistic rules to generate the carrier assignment and scheduling. Both approaches are developed using spreadsheet due to its ease of implementation and lowest cost of ownership. The outcome indicates that this decision support system gives a better result compared to the manual assignment of carrier while minimizing the distribution cost. Furthermore, the system requires only a few minutes to generate the results and thus can be applied to practical usage. It is also shown that the system could be used as a viable planning tool for strategic decision concerning investment on the number of carrier required to meet future demand.
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spelling oai:scholars.utp.edu.my:18052017-01-19T08:25:14Z http://scholars.utp.edu.my/id/eprint/1805/ DEVELOPMENT OF SPREADSHEET BASED DECISION SUPPORT SYSTEM FOR PRODUCT DISTRIBUTIONS Mokhtar, Ainul Akmar Muhammad, Masdi A Majid, M Amin T Technology (General) Product distribution is a complex process as it involves meeting requirements from several stake holders including the distributors and customers. The primary objective of product distribution process is meeting the customers’ demand as well as minimizing the cost incurred by the distributor. For distributor that supports large number of customers, the available commercial softwares for optimizing and scheduling of product distribution are typically being used. However, these systems are complex, costly and require long processing time on a dedicated computer system. Thus, these commercial softwares are not practical for distributors that support small number of customers and as such the optimization and scheduling activities are usually done manually based on rule-of-thumb. This process is time consuming and the results may not be optimal. This paper presents a decision support system employing a two-step sequential approach for product deliveries. First is to determine the optimum carrier required to meet customers demand utilizing linear programming with the objective function to minimize the total distribution cost. Premium Solver Platform (PSP) is utilized to model the optimization problem. Second is to use multi-criteria decision making approach applying various physical and logistic rules to generate the carrier assignment and scheduling. Both approaches are developed using spreadsheet due to its ease of implementation and lowest cost of ownership. The outcome indicates that this decision support system gives a better result compared to the manual assignment of carrier while minimizing the distribution cost. Furthermore, the system requires only a few minutes to generate the results and thus can be applied to practical usage. It is also shown that the system could be used as a viable planning tool for strategic decision concerning investment on the number of carrier required to meet future demand. 2009-09 Conference or Workshop Item PeerReviewed application/pdf en http://scholars.utp.edu.my/id/eprint/1805/1/493-498.pdf Mokhtar, Ainul Akmar and Muhammad, Masdi and A Majid, M Amin (2009) DEVELOPMENT OF SPREADSHEET BASED DECISION SUPPORT SYSTEM FOR PRODUCT DISTRIBUTIONS. In: Proceedings of the 4th World Congress on Engineering Asset Management, 28-30 September, Athens, Greece.
spellingShingle T Technology (General)
Mokhtar, Ainul Akmar
Muhammad, Masdi
A Majid, M Amin
DEVELOPMENT OF SPREADSHEET BASED DECISION SUPPORT SYSTEM FOR PRODUCT DISTRIBUTIONS
title DEVELOPMENT OF SPREADSHEET BASED DECISION SUPPORT SYSTEM FOR PRODUCT DISTRIBUTIONS
title_full DEVELOPMENT OF SPREADSHEET BASED DECISION SUPPORT SYSTEM FOR PRODUCT DISTRIBUTIONS
title_fullStr DEVELOPMENT OF SPREADSHEET BASED DECISION SUPPORT SYSTEM FOR PRODUCT DISTRIBUTIONS
title_full_unstemmed DEVELOPMENT OF SPREADSHEET BASED DECISION SUPPORT SYSTEM FOR PRODUCT DISTRIBUTIONS
title_short DEVELOPMENT OF SPREADSHEET BASED DECISION SUPPORT SYSTEM FOR PRODUCT DISTRIBUTIONS
title_sort development of spreadsheet based decision support system for product distributions
topic T Technology (General)
url http://scholars.utp.edu.my/id/eprint/1805/
http://scholars.utp.edu.my/id/eprint/1805/1/493-498.pdf