Improvement of a distribution network of a direct sale cosmetics supply chain

Abstract

Consistent studies assessing the impact of the strategic decision of distribution nodes with no-financial key performance indicators are lacking. This work focuses on studying how the distribution system of a direct sale cosmetics supply chain behaves and on generating decision-making scenarios relating to the definition and size of distribution nodes. A systems dynamics-based simulation tool deals with a strategic decision and size of distribution nodes in a reduced direct sale supply chain of cosmetic products. The methodological approach presented herein allows to analyse how existing facilities operate and to verify their performance. Finally, this work provides a reference conceptual model for the strategic definition of distribution nodes. (Received in October 2012, accepted in June 2013. This paper was with the authors 3 months for 3 revisions.).