Assessment of a New Model to Optimize Flow in Distribution Networks

The distribution of goods from suppliers to customers plays an important role in the supply chain. In this paper, the approach of Demand Driven Distribution Resource Planning is proposed in order to optimize the distribution flow in the supply chain. We follow a methodology of presenting the problem of variability, then pointing at the solutions in the literature, among them DRP, and finally giving the proposed model. The purpose is to manage the amplification of the demand Variability, while improving the traditional Distribution Resource Planning. A literature review is presented about the impact of variability on distribution flow, and the solutions proposed in this context. Then, a general study of distribution industries is investigated in order to apply the Demand Driven model; we show the buffer positioning in the distribution network, and the profile and levels for these buffers. After the dynamic adjustment, we present the Demand Driven Planning and the execution based on the net flow equation. The results discuss the approach and the steps of the implementation in the distribution industry.