An Optimal Dynamic Approach to Reconfigurable Logistic System

In Today's globalized world and cutthrought competition distribution costs play an important part in entire logistic network. From inbound to outbound logistics, everywhere focus seems to be on minimizing the distribution cost of goods. Highlighting the cost minimization issue, routing of the logistic activities is very important. In other words a reconfigurable logistic system can help reducing the cost to a significant level in a supply chain.In this paper,we have addressed the important issue of the consolidation and quantity allocation where optimal combination of the goods of diverse nature is achieved. This optimal combination is dependent on variables such as weight and volume of the products and capacity of the trucks. The trucks are distinguishable on the basis of their carrying capacities and have distinct hiring costs associated, i.e. different types of vehicle incur distinct fixed cost for each trip from the warehouse to retailer. It is assumed that retailer has a deterministic demand pattern over a finite planning horizon. Finally, the case is validated through a fast moving consumer good's company where anheuristic approach is used for the optimization.The heuristic provide feasible and effective solution for the mentioned multi-variable problem.