Optimal Multi-Temperature delivery frequency for small format stores

Retailers are exploring more efficient ways to deliver to small format stores that demand frequent and small volume deliveries from Distribution Centers. The need to deliver products at different temperatures, viz. Ambient, Refrigerated and Frozen, reduces volumes that need to be delivered for each product category. One way to make delivery more effective is to use Multi- Temperature Trailers (MTT) that can consolidate demand for products at different temperatures onto a single truck, thereby reducing the number of trips and stops while delivering to small format stores. This thesis explores delivery policy options and the usage of MTT to deliver to small format stores and seeks to define an optimal strategy for such deliveries. The research compares the cost and frequency of delivery for different delivery policy options to help identify the most suitable delivery policy. Demand and distance data for a group of small format stores of a large retailer were used as inputs into the analysis. Apart from the base scenario, the analysis considers several other scenarios, providing insights that can be extended beyond the current stores and geography. In general, the analysis reveals that usage of Multi- Temperature trailers can provide significant cost and operational advantages over Single Temperature trailers for deliveries to small format stores.

Department dc:contributor.department

Massachusetts Institute of Technology. Engineering Systems Division.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2015

Authors dc:creator

• Barooah, Mayurpankhi
• Shin, Seung Hwan

Advisor dc:contributor.advisor

• Chris Caplice.

• Engineering Systems Division.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/99803

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/99803