Development of a tool supporting after-sales inbound logistics

Abstract

Nissans current procurement cost of their after sales parts is not at its lowest. Possible savings can be made by consolidating shipments and buying products at a higher unit cost but making use of cheaper transportation. Decisions need to be made regarding the vendor being sourced from as well as the mode of transportation being used.

A “decision making tool” has been developed. This “tool” makes use of existing database data and transportation costs to determine which vendor to source from and which transportation mode to use. The tool consists of an Access database and a LINGO linear programming model.