Designing the decentralised warehousing system of Unilever Ceylon Ltd.

By: Call Number: AIT Thesis no. ISE-96-09 Contributor(s): Material type: TextSeries: Asian Institute of Technology. Thesis ; no. ISE-96-09Publication details: Bangkok : Asian Institute of Technology, 1996Description: 139 pSubject(s): Online resources: Dissertation note: Thesis (M. Eng.) - Asian Institute of Technology, 1996 Summary: This report is produced based on a case study on the distribution system of Unilever Ceylon Ltd.- Consumer Division. The focus of the study was to design a decentralized warehousing system for the organization concerned and to compare it's performance with that of centralized operation. The decentralized system was designed to optimize the incremental costs involved and based on a discrete location model (DUALOC). The comparison of the incremental costs of the optimum decentralized warehousing system with those of the centralized operation shows that the latter is a more economical option in the . . given scenario. The comparison of incremental costs of the two systems shows that the centralized operation is superior to the decentralized operation with respect to all of them except to those of transportation and damages. Incremental cost of inventory is the main contributor towards the higher cost in decentralization whilst the edge the decentralized system gives over the centralized system with respect to cost of transportation could be considered marginal. The study shows that there are several means that would contribute towards further reducing the incremental cost of the decentralized system.
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A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Advanced Technologies

Thesis (M. Eng.) - Asian Institute of Technology, 1996

This report is produced based on a case study on the distribution system of Unilever Ceylon Ltd.- Consumer Division. The focus of the study was to design a decentralized warehousing system for the organization concerned and to compare it's performance with that of centralized operation. The decentralized system was designed to optimize the incremental costs involved and based on a discrete location model (DUALOC). The comparison of the incremental costs of the optimum decentralized warehousing system with those of the centralized operation shows that the latter is a more economical option in the . . given scenario. The comparison of incremental costs of the two systems shows that the centralized operation is superior to the decentralized operation with respect to all of them except to those of transportation and damages. Incremental cost of inventory is the main contributor towards the higher cost in decentralization whilst the edge the decentralized system gives over the centralized system with respect to cost of transportation could be considered marginal. The study shows that there are several means that would contribute towards further reducing the incremental cost of the decentralized system.

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