IT software will not deliver results on its own. First, it is necessary to design and implement appropriate organizational structures and processes, select sets of methods and tools to be used, determine their configurations and control parameters, and finally proceed to launching planning applications.
The article aims to present the most important issues related to distribution planning. We do not deal here with the problems of optimizing distribution connections, nor with dynamic flow control within a set of shipping and receiving points. Although these are issues related to distribution planning, they are not often addressed in the planning process itself. We assume that we are dealing with an existing distribution network whose structure does not essentially change.
Fig. 1 is a general diagram of a distribution network that can fit many different industries. A certain product, distributed in this network, is manufactured by two Production Plants (PP). This product is then delivered to two Main Distribution Centers (MDC), from where it is sent further to Local Distribution Centers (LDC). It is worth noting that each MDC can be supplied by both PPs and that some LDCs can be supplied by two MDCs.
Despite its simplification, the diagram in Fig. 1 allows for the presentation of all typical elements of distribution planning. Thus, we are dealing with more than one stage of transport and with intermediate links. We plan not only how much and when, but also from where and to where. The same product can come from different sources and be directed to different receiving locations. This means that, for example, at the MDC level, it is necessary to plan not only when and in what quantity, but also from which PP the deliveries should arrive. Similarly, in the PP, apart from production, the allocation of deliveries between MDCs is also planned.
The article aims to present the most important issues related to distribution planning. We do not deal here with the problems of optimizing distribution connections, nor with dynamic flow control within a set of shipping and receiving points. Although these are issues related to distribution planning, they are not often addressed in the planning process itself. We assume that we are dealing with an existing distribution network whose structure does not essentially change.
Fig. 1 is a general diagram of a distribution network that can fit many different industries. A certain product, distributed in this network, is manufactured by two Production Plants (PP). This product is then delivered to two Main Distribution Centers (MDC), from where it is sent further to Local Distribution Centers (LDC). It is worth noting that each MDC can be supplied by both PPs and that some LDCs can be supplied by two MDCs.
Despite its simplification, the diagram in Fig. 1 allows for the presentation of all typical elements of distribution planning. Thus, we are dealing with more than one stage of transport and with intermediate links. We plan not only how much and when, but also from where and to where. The same product can come from different sources and be directed to different receiving locations. This means that, for example, at the MDC level, it is necessary to plan not only when and in what quantity, but also from which PP the deliveries should arrive. Similarly, in the PP, apart from production, the allocation of deliveries between MDCs is also planned.
It should also be added that the diagram presented in Fig. 1 should not be treated too narrowly. LDCs can, for example, represent end customers. On the other hand, MDCs can be transshipment points or processing plants. Of course, in practice, we can also encounter a larger number of stages in the distribution chain.
The article comes from the magazine “Logistyka” No. 3/2005.