MEETING CHANNEL PARTNER EXPECTATIONS: A TRANSPORTATION MODEL FOR CEMENT DISTRIBUTION IN INDIA.

This paper describes an optimization-based transportation model developed for tactical supply chain planning for channel partners of a large cement-making company in India with a geographically wide distribution network. Cement is essential in the construction industry as itis the principal binding agent. In today’s scenario, channel partners prefer direct deliveries to sites when the daily volumes increase. This paper explores the expectations of channel partners concerning supplies of cement. The results show that the channel partners in the cement industry have considerations for minimum lot size, direct deliveries at the site, minimum damages, best quality, and timely delivery. Furthering this analysis, the Vogel approximation method (VAM) approach for optimal transportation has resulted in balancing supplies and demand with channel partners and determining optimal transportation schedules. The transportation model has demonstrated improvement in the planning of logistics compared to the traditional approach in the cement industry from an Indian perspective. Keywords: Cement Industry, Transportation model, Channel Partners, VAM, Optimization.