Redesign of the Supply Chain of a Restaurant Franchise in the Food Industry

Global Journal of Business Research, v. 10 (2) p. 103-111

10 Pages Posted: 23 Feb 2017

See all articles by Erin Chancey

Erin Chancey

Universidad Popular Autónoma del Estado de Puebla (UPAEP)

José Luis Martínez Flores,

Universidad Popular Autónoma del Estado de Puebla (UPAEP)

Maricarmen Báez Palma

Universidad Popular Autónoma del Estado de Puebla (UPAEP)

Omar David Badillo Valenzuela

Universidad Popular Autónoma del Estado de Puebla (UPAEP)

María Arlethe Sánchez Cabrera

Universidad Popular Autónoma del Estado de Puebla (UPAEP)

Date Written: 2016

Abstract

This research analyzes the problem of facility location and vehicle routing for an efficient logistics system in a practical case study application. It is intended to redesign the logistics network of a franchise company in the food industry in the city of Puebla, Puebla (Mexico). First, facility location is analyzed and two scenarios are presented, installing one new distribution center, and installing two new distribution centers, by the means of the P-median model. Subsequently, a new distribution route between the depots (distribution centers) and demand points (restaurant franchises) will be proposed by means of a Capacitated Vehicle Routing Problem, to satisfy demand and operational constraints of the customer. The objective of this study is to minimize costs through a reduction in delivery times and distances. Exact facility locations are presented along with a vehicle route scheduling, followed by a cost analysis to help in the ultimate decision of the logistics network redesign.

Keywords: Facility Location, P-median, Capacitated Vehicle Routing Problem, Logistics, Distribution

JEL Classification: C6

Suggested Citation

Chancey, Erin and Martínez Flores,, José Luis and Báez Palma, Maricarmen and Badillo Valenzuela, Omar David and Sánchez Cabrera, María Arlethe, Redesign of the Supply Chain of a Restaurant Franchise in the Food Industry (2016). Global Journal of Business Research, v. 10 (2) p. 103-111, Available at SSRN: https://ssrn.com/abstract=2909966

Erin Chancey (Contact Author)

Universidad Popular Autónoma del Estado de Puebla (UPAEP) ( email )

21 sur 1103 Barrio
Puebla, 72410
Mexico

José Luis Martínez Flores,

Universidad Popular Autónoma del Estado de Puebla (UPAEP) ( email )

21 sur 1103 Barrio
72410

Maricarmen Báez Palma

Universidad Popular Autónoma del Estado de Puebla (UPAEP) ( email )

21 sur 1103 Barrio
Puebla, 72410
Mexico

Omar David Badillo Valenzuela

Universidad Popular Autónoma del Estado de Puebla (UPAEP) ( email )

21 sur 1103 Barrio
Puebla, 72410
Mexico

María Arlethe Sánchez Cabrera

Universidad Popular Autónoma del Estado de Puebla (UPAEP) ( email )

21 sur 1103 Barrio
Puebla, 72410
Mexico

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