BUS606: Operations and Supply Chain Management

Description of the Scenarios

Assuming a four-order supply chain, the first of this study was the manufacturing supplier (manufacturer denoted as m), the second was the supply wholesaler (supplier, denoted as s), the third was the distribution center (warehouse, denote as w), and the fourth order was the distribution base (retailer, denoted as r). Additionally, the mathematical model contained two scenarios for transportation and distribution.

• Scenario 1

The "from the distribution center (warehouse) to the distribution base" section of the supply chain transportation model covers reverse logistical factors. After transporting goods to the distribution base, the return vehicle was then used to send the packaging material back to the distribution center (warehouse) so that it could be reused in the supply chain. At the same time, the return vehicle was utilized, which reduces carbon emissions and costs in the supply chain. The supply chain is shown in Figure 2.

Figure 2. Supplier chain transportation in Scenario 1.

• Scenario 2

In the manufacturing supplier transportation model, vehicles transported goods from the distribution center (warehouse) to the distribution base. On the way back, they stopped at the manufacturing supplier to directly transport goods to the distribution center (warehouse), thus skipping the supply wholesaler stage and ensuring the availability of more vehicles at both ends, namely from the manufacturing supplier to the distribution center (warehouse). Reducing the lead time facilitates rapid deliveries and faster response times, thereby ensuring more stable inventory at the distribution center (warehouse) and lowering inventory levels. The overall supply chain still has four orders. Only the goods in this scenario have three orders. The supply chain is shown in Figure 3.

Figure 3. Supply chain transportation of goods in Scenario 2.