Optimizing Transportation Costs in Global Supply Chain using Linear Programming


Added on  2019-09-18

8 Pages1909 Words435 Views
Business DevelopmentPolitical Science
Global Supply Chain Management
Optimizing Transportation Costs in Global Supply Chain using Linear Programming_1

IntroductionIn this present paper, we will discuss the global procurement change in which changes are justified, and knowledge is implemented within the organization. The paper also describes the global network management implementation of linear programming scientific model in order to minimize the transportation issue in the Coca-Cola Company, and it is settled by the administration researcher programming in order to produce an ideal arrangement. The global supply chain management analysis of Coca-Cola Company shows that there are transportation issues which act as a barrier to achieving the goals and objectives of the company.Global procurement change The global procurement is defined as the way which is used by the company in order compete the competitors globally. There are various challenges which are faced by the company, namely, sustainability, risk, innovation, transportation, collaboration, and transparency. Justifying the changes Supply chain strategy analysis 1.StorageThe company currently operates in more than two hundred nations across wide over six working locations. The company is managing its storage through system management strategy in order to provide the products and services on time. 2.Inventory
Optimizing Transportation Costs in Global Supply Chain using Linear Programming_2

The company has large inventory store, and there are two types of inventory, namely, cycle inventory and safety inventory. (Jervis et al., 2015) The company faces various challenges in managing the safety inventory due to uncertain demand which leads to exceeding the inventory.3.Transportation cost The Coca-Cola Company is a world's largest company, but the company faces various challenges due to lack of standard procedure for overseeing the transportation of The Company. 4.Facilities The company has currently 92,400 employees around the world, and it has more than nine hundred plants due to which the company has centralized it's headquartered in order to manage its all process in a most efficient and effective manner.It shows that the company is facing a problem of high transportation costs which impacts on the profit margin of the company and it shows that the global procurement needs to be changed. The supply chain analysis shows that there is an absence of a standard procedure for over viewing thetransportation model of the company due to which the company bears a huge amount of transportation costs, and it reduces the sales volume of the company.Implementing the knowledge within the week to the company The strategic fit map shows that the business strategy of the company includes mission, vision, goals and competitive advantage in order to stand out among the competitors within the same industry. The IT strategy of the company includes digital marketing, system management, and distribution system. The organizational structure of the company includes employees, suppliers, NGOs, communities, government, customers and others (Mena et al., 2014). The strategic
Optimizing Transportation Costs in Global Supply Chain using Linear Programming_3

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