New Distribution Centre Locations for a growing retail company in Thailand: The case study of Siam Global House Plc.

Suriyawanakul, Kriangkai (2010) New Distribution Centre Locations for a growing retail company in Thailand: The case study of Siam Global House Plc. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Logistics and distribution management is a very important topic for many industries for the last couple of decades. Many companies have structured and redesigning their logistics network to compete in the market. Among all, warehouse location decision is one of the most important elements as it is learnt that good location decisions can save companies millions every year.

Siam Globalhouse, one of the largest hardware retailers in Thailand, wants to improve the efficiency of their supply network and they think by setting up new warehouses can solve their problems. This project uses an integrated approach to find the best location to locate new warehouse(s) in Thailand with the objectives to: (1) reduce transportation costs, (2) reduce number of stock-outs, excessive inventory level and improve supply responsiveness, and (3) cater future expansion.

The approach consists of three techniques namely: centre of gravity (CoG), mixed-integer linear programming (MILP), and analytic hierarchy process (AHP). The centre of gravity techniques will identify the initial potential warehouse location, and another potential location proposed by identifying and analyzing practices of competitors and non-competitors considering their strategies, nature of business, and of roadway systems around it. The AHP identify the alternatives and attributes then decision makers rate each alternative accordingly to the level of their importance and AHP gives the option with highest score. Then the mixed-integer linear programming is used to find the optimal configuration of the distribution network. The results from the analysis reveal that Wang Noi district, Ayutthaya province is the location for warehouse which has the minimal distribution costs but by having two warehouses in Nakhon Pathom and Khonkaen to serve demand and potentially improve responsiveness and efficiency to the supply network. Finally it is concluded that the optimal solutions given by the model may not necessarily the best solution for the company, many other considerations has to be taken into account to locate the best location for warehouse.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 20 Jan 2011 14:20
Last Modified: 23 Oct 2016 10:33
URI: http://eprints.nottingham.ac.uk/id/eprint/24023

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