Analysis of the operations and transportation cost structure of a distribution center of plastics (oct 2006)


Using the order database from 6 months, spanning hundreds of SKU's and some 10 countries, a detailed analysis was made of the cost of preparing, picking, shipping and transporting a customer order for a plastic consumer goods company. Principles of Activity Based Costing were used, as well as optimization principles in warehouse operations and route planning. The results delineated clearly the cost of each management policy decision, and the potential improvements that could be made. Performed by Kurt De Cock and prof. Rik Van Landeghem.