An Intelligent cost optimized central warehouse and redistribution root plan with truck allocation system in Colombo region  for Lion Brewery Ceylon PLC

Dilan Dhanushka Ganepola; Nuwan Dhammika Jayarathna; Ganga Madhushani

doi:10.14254/jsdtl.2018.3-2.4

Dilan Dhanushka Ganepola ⁽¹⁾ , Nuwan Dhammika Jayarathna ⁽²⁾ , Ganga Madhushani ⁽³⁾

(1) Colombo International Nautical Engineering College , Sri Lanka

(2) Colombo International Nautical Engineering College , Sri Lanka

(3) Colombo International Nautical Engineering College , Sri Lanka

https://doi.org/10.14254/jsdtl.2018.3-2.4

Issue
Vol. 3 No. 2 (2018): Special Issue - Sustainable Ports, Shipping and Logistics: Emerging Issues and Management

Keywords:

Centralize, decentralize, transportation planning

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Abstract

This research is a case study based on Lion Brewery Ceylon PLC, Biyagama, which is a famous beer company and the market leader in Sri Lanka. Researcher identifies that, currently Company outbound logistics is consisted with a decentralized distribution and a redistribution process for bottles and cans in Colombo region, and an extra cost is being spent for that unnecessarily. The main objective of this research is to build a cost minimized model for distributing Bottles and Cans for the region. For that, all demand regions in Colombo region was divided in to main 6 sub clusters. Then a centralized Warehouse and an optimal path which joins each sub cluster has been determined. The gravity model (By using excel solver) was used to find a centralized warehouse that can easily be connected with each sub cluster. The optimal path was determined through Hamiltanian cycle by using the lingo software. Finally, the milk run was completed with determining a cost optimized truck allocation system through linear programming model. At the end result proved that, the proposed model saves the monthly cost of bottles distribution by 17.2% and monthly cost of cans distribution by 11.6%.

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References

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Authors

Dilan Dhanushka Ganepola

Colombo International Nautical Engineering College

Nuwan Dhammika Jayarathna

Colombo International Nautical Engineering College

nuwan@cinec.edu (Primary Contact)

Ganga Madhushani

Colombo International Nautical Engineering College

Ganepola, D. D., Jayarathna, N. D., & Madhushani, G. (2018). An Intelligent cost optimized central warehouse and redistribution root plan with truck allocation system in Colombo region for Lion Brewery Ceylon PLC. Journal of Sustainable Development of Transport and Logistics, 3(2), 66–73. https://doi.org/10.14254/jsdtl.2018.3-2.4

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