The Study of Warehouse Consolidation in a Logisitcs System – A Case Study on a Firm in Mainland China

• Main Authors: Chien-Tung Chen, 陳堅棟
• Other Authors: 蔣明晃
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/50864078752979846902

碩士 === 國立臺灣大學 === 商學研究所 === 94 === In the modern competitive market environment, all businesses not only hope to build a distribution network using minimal cost, but also can deliver products to their customers in the right quantity, right quality, right place and right time. Under these conditions, logistics network planning becomes an important issue for supply chain management in recent years. Warehouse consolidation is the long-run strategy in supply chain management. Nevertheless, cost factors that must be considered at the time of logistics network planning are numerous and there is a trade off relationship among the various cost factors. Therefore the purpose of this essay is to demonstrate the ideal ratio between warehouses and distribution centers while maximizing the optimal distribution network in order to meet customers’ needs. This essay focuses on a business named “A Company” which is a Taiwan based company in Mainland China. By utilizing this company as a real case study, this essay will weigh relevant costs and reorganize the quantity of their warehouses as well as the distribution of their products in its current distribution network. The best distribution network for the company will also be suggested to reduce the total logistics cost. After assessing the real data, the number of warehouses encompassed in the best distribution network is reduced from seven to three. Under the best distribution network, the locations of the warehouses are in the southwest, northeast, and northwest. The amount of cost savings pursuant to implementing the warehouse reduction would be RMB 826,115 dollars per month and about RMB 10 million dollars per year.