Supply Chain Network Design-Opportunities for Cost Reduction as Applied to East Africa Bottling Share Company in Ethiopia

Abstract

A mathematical model capturing many practical aspects of network design problems and optimization techniques is proposed. This model is applied to East Africa Bottling Share Company. By the application of this proposed model an annual cost saving of 192,192 Birr, and through alleviating vehicle scheduling problem a cost saving of 405,000 Birr per year may be achieved. Moreover, by reviwing the existing situation of the company, an annual demand of 366,080 cases which is equivalent to 8,785,680 Birr is demonstrated to be realized. This research methodology and outcome may be applied to other companies intending to emulate the benefits in SC network design illustrated in this study.

Keywords: Supply Chain Network Design, Mathematical Model, Optimization