A proposal to redesign the distribution networks of steel manufacturing and distribution companies

Abstract

Steel product manufacturing and distribution companies use diverse optimization tools to improve its operations. This study seeks to compare the current model (AS-IS) of a company, in order to design a new distribution network and location of its current supply centers, allowing economic and time improvements. Using this methodology, companies will optimize the customer's service level without neglecting its quality proposal; the distribution centers will enhance their capacity as well as the use of their resources, and the decision makers will simulate their models using operations research to define optimal policies. Moreover, we will present a proposed model (TO-BE) to the company. The comparison between the AS-IS and TO-BE models indicates a reduction in the delivery times and costs, currently being the main problems of the company. The contribution of this work lies in the optimization process of the current model and its proposals.