Optimization of Outbound Handling and Freight to Customer Operations (Tier 2) by adjusting the Customer Order Frequency and the Minimum Order Quantity
A case study of The Kraft Heinz Company
D. Logothetis (TU Delft - Mechanical Engineering)
M.B. Duinkerken – Mentor (TU Delft - Transport Engineering and Logistics)
R. Negenborn – Coach (TU Delft - Transport Engineering and Logistics)
N.D. Charisi – Graduation committee member (TU Delft - Mechanical Engineering)
A. Papakonstantinou – Graduation committee member (Kraft Heinz)
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Abstract
This research investigates ways to maximize the outbound handling and freight to customer operations efficiency based on the real data of The Kraft Heinz Company. A cost to serve model has been developed to evaluate the performance of various design alternatives deriving from the field of "quantity adjustment" as the dependence of cost efficiency upon labour intensity at the warehouses and the truck volume utilization indicated. The research concludes upon the selection of the optimal design alternative to be implemented per customer as well as upon which design alternative is more suitable for clusters of customers that share specific characteristics.