Nagendra Sohani, Hemangi Panvalkar
Abstract: This paper is the integrated approach of inventory and distribution system to achieve the goal of competitive advantage through cost reduction and service enhancement. Total logistic cost mainly depends on the transportation, facility and inventory cost. This paper includes inventory and distribution policy decisions, by the proper integration of which it is possible to optimize the cost and ensure for better responsiveness. The integration is explained with the practical example of a single supply and multiple demand system. The paper includes Vendor managed inventory as a tool for inventory management at every stage of the supply chain and travelling salesman problem is considered for optimizing the transportation cost.
Keywords: logistics, competitive advantage, Vendor managed Inventory, Vehicle routing problem, Traveling salesman problem