Analysis of Bulk Cement Distribution Network Considering Market Share and Operating Income after Acquiring the Competitor

Akma Kurniawan, Ahmad Rusdiansyah


The distribution network is the most important strategic decision issues that need to be optimized for the efficient operation of whole supply chain. When a company make a business acquisition that brings more distribution facilities, the location allocation planning of the distribution network needs to be reconsidered. The distribution network includes the link from factories to packing plants and from factories or packing plants to demand points. The linear programming model was developed as a solution to solve optimization problem which involves multisource, multiproduct, and multipored in multi-echelon distribution network. We build numerical experiments from two scenarios to show the behaviour of this model. This model will determine the decision of distribution facilities location should be used and quantities should be allocated to achieve the optimal operating income considering the market share policy to satisfy the customer demands.


Distribution Network; Linear Programming; Location Allocation; Market Share; Operating Income

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