Logistics Optimization with Supplier Inventory Management Approach in a Single Factory-Multiple Distribution Branch System

Authors

  • Ali Najafi Faculty of Industrial Engineering, Tarbiat Modares University, Tehran, Iran.
  • Seyyed Hesam Eldin Zagordi * Faculty of Industrial Engineering, Tarbiat Modares University, Tehran, Iran.

https://doi.org/10.48313/scodm.v2i4.45

Abstract

In this study, a two-echelon supply chain comprising one manufacturer and several distribution centers is examined, with an emphasis on distribution and logistics optimization. The main objective of the research is to reduce logistics costs and prevent inventory shortages at distribution centers by adopting a Vendor Managed Inventory (VMI) approach. Under this approach, the manufacturer is responsible for managing inventory levels at the distribution centers and, through optimal planning, supplying the required quantities. The problem addressed in this research is the optimal distribution of products from the factory warehouse to distribution centers, ensuring that, in addition to meeting demand, logistics costs are minimized. To solve this problem, a mathematical model is developed to determine the optimal quantity of product distribution and the appropriate type of transportation fleet to minimize logistics costs and avoid inventory shortages. The case study of this research focuses on the distribution of products from the factory warehouse to multiple distribution centers.

Keywords:

Logistics, Distribution, Vendor-managed inventory

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Published

2025-10-28

Issue

Vol. 2 No. 4 (2025): Supply Chain and Operations Decision Making

Section

Articles

How to Cite

Najafi, A. ., & Eldin Zagordi, S. H. . (2025). Logistics Optimization with Supplier Inventory Management Approach in a Single Factory-Multiple Distribution Branch System. Supply Chain and Operations Decision Making, 2(4), 210-218. https://doi.org/10.48313/scodm.v2i4.45