Comparing logistics systems : plants or warehouses in the network design | |
| Author | Pairoj Raothanachonkun |
| Call Number | AIT Thesis no.TE-03-01 |
| Subject(s) | Business logistics Transportation--Costs |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering |
| Publisher | Asian Institute of Technology |
| Abstract | Cement is major input for construction thus logistics system becomes very important in order to minimize total logistics cost. According to construction in Thailand, it was very boom during 1992 to 1996. However, domestic demand decreased due to economics crisis occurred in 1997. For example, domestic demand was around 60 percent of manufacturing capacity in 2001. To compete with other cement companies by reducing total logistics cost, Siam Cement Public Company Limited (SCC) decided to close 39 warehouses from total 42 warehouses. Currently, SCC operates only remaining three warehouses and five cement plants. Accordingly, two main strategies consisting of centralized plants system and decentralized plants system are considered to improve logistics costs. sec changed only decentralized system. This thesis presented analysis into two parts. Firstly, total logistics costs of decentralized plants system and centralized plants system were evaluated by closing plant operation, and using remaining warehouse operation without altering their location. Total logistics costs contain not only plants costs, warehousing costs and transportation costs but also environmental costs from cement producing and distribution. To create a long-term sustainable society with the least possible negative environmental impact, environmental issue is very important. Secondly, to minimize total logistics cost calculated with and without environmental cost, various locations of single warehouse were evaluated by using linear programming. In conclusion, transportation cost found to be the main problematic cost that effects the total logistics costs adversely. As a result, decentralized plants system of SCC is well designed that it overcomes transportation cost. Cement products were distributed by trailer and ship without considering environmental cost; the best warehouse locations of centralized system of both modes were located near each other at Surat Thani province. Finally, considering cement products distributed by ship and environmental cost, the best warehouse location was selected as to be same as at Surat Thani province. On the other hand, considering cement products distributed by trailer and environmental cost, the best warehouse location was found to be changed from Surat Thani to Prachuapkirikhan province. |
| Year | 2004 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Transportation Engineering (TE) |
| Chairperson(s) | Hanaoka, Shinya |
| Examination Committee(s) | Yordphol Tanaboriboon ;Pannapa Herabat |
| Scholarship Donor(s) | AIT Fellowship |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 2004 |