A Review on Long Distribution Channel‟s Problems

Abstract

An analysis of supply chain system could become more complex when the network system should cover widely dispersed locations. This could happen in a case where a product must be delivered using long distribution channel. By reviewing literatures over the last decade, this paper aims to identify and to gain more comprehensive understanding of the problems related to the long distribution channel’s characteristics. The term ‘long distribution channel’ refers to a multi-tiers in the distribution stages where each tier commonly contains more than one site. The result shows that in order to design an optimum long distribution channel, some prominent problems that impact on both distribution costs and delivery times need to be considered. The problems encompass variability, bottleneck, bullwhip effect, high transportation and logistics costs.