Transportation and distribution models optimize the movement of goods through supply chain networks from sources (factories, warehouses) to destinations (customers, retailers), addressing core decisions of route selection, vehicle allocation, and flow quantity assignment. These mathematical models balance transportation costs, distribution channel choices, and delivery constraints using network flow formulations and optimization techniques. Table of Contents: - **Supply Chain Network Flow**: Movement of products through multi-stage distribution systems - **Origin-Destination Relationships**: Sources to destinations in supply chain networks - **Transportation Costs**: Variable costs per unit distance/route and fixed costs for establishing routes - **Inventory-Transportation Trade-off**: Balancing stockpiling costs vs. frequent shipment costs - **Point-of-Sale (POS) Data**: Real-time information driving demand-responsive distribution - **Continuous Replenishment**: Triggered shipments based on actual customer demand - **Multi-echelon Distribution**: Factory→Regional DC→Local DC→Retailer network structures - **Optimization Models**: Linear/mixed-integer programming for flow allocation and cost minimization
Transportation and distribution models optimize the movement of goods through supply chain networks from sources (factories, warehouses) to destinations (customers, retailers), addressing core decisi…