Optimization of Logistical Distribution as a Way of Improving the Sales Strategy of Meat-Processing Factories

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Optimization of Logistical Distribution as a Way of Improving the Sales Strategy of Meat-Processing Factories

Journal Title: Проблеми економіки - Year 2015, Vol 2015, Issue 1

Abstract

The article aims to form a sales strategy of meat-processing factories, determine the mechanism of its implementation, and provide a rationale for the selected approach to optimization of the logistic distribution of meat-processing factory output at the sales stage. The work proposes a stage-by-stage scheme of carrying out the optimization procedure whose objective is minimization of transportation costs during the physical distribution of output at a sales outlet. Using the Clarke-Wright algorithm and the example of the meat-processing industry, the study allowed identifying the optimum transportation routes which take into account the location of the sales points and goods traffic volumes. A scheme of output distribution transportation routes was constructed which is optimum by the criterion of minimum costs. Practical testing of the proposed approach at the studied meat-processing enterprise allowed evaluating its effectiveness, which is manifest in shortened transportation routes - kilometrage benefit - and cost saving while transporting the output to sales outlets.

Authors and Affiliations

Vladimir Pisarenko, Nataliia Hurzhiy

Keywords

EP ID EP122153
DOI -
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