A study on the distribution system of blitz soutag

• Main Authors: Chong, Jazmin, Paz, Jennifer V.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Business enterprises, Philippines; Corporation; Investments; Programming (Mathematics); Consumer cooperatives; Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6469
• Institution: De La Salle University

BLITZ SOUTAG is the major distributor of Johnson and Johnson, Philippines in the Southern Tagalog Region. The products are distributed in the areas of Upper Laguna, Lower Laguna, Upper Cavite, Upper Batangas, Upper Quezon, and Lower Batangas/Lower Quezon. The study focuses on the visitations made by a pair of sales representatives to a certain number of van accounts (i.e. customers) in a particular area. The visitations are made on a weeklong basis given the number of accounts and minimum of 30 ordering accounts. Three programming models are presented to solve the problem with the objective of maximizing accounts visitation in one particular area. The first model is the Salesman Allocation model that will determine the number of salesmen needed to be allocated in all the distribution areas of Southern Tagalog in order to maximize store visitations. The model will verify if the existing number of salesmen representatives is already enough or if there is a need to hire additional salesmen. It will also look into the possibility of having a certain salesman handle two areas instead of one. Based on the results obtained, it was revealed that an addition of two senior sales representatives with their corresponding junior partner is necessary to maximize store visitations in all area divisions. With the addition of two salesmen, it also becomes necessary to add two trucks for transportation use. The second model is the Product Mix model, which is a supplementary model to determine the optimal volume mix (in cases) of the 167 lines of products to be loaded in the truck. This model aims to solve the occurrences of product insufficiency in the truck or even the occurrences of having truck returns to the warehouse for reloading. With the addition of two senior and junior sales representatives, the salesmen allocation within the provided area divisions will be the basis of determining how many cases of each product line will be loaded into the truck. This will also account the truck volume and the area's historical demand. The third model is the Traveling Salesman model, which will schedule the routing of the representatives in the given area of distribution. The model will determine how the salesmen will travel during store visitation with the ability to visit all required number of stores. This is with the assumption that he will be traveling with the truckload of J & J products for one week without coming back to the main Calamba warehouse. This model aims to solve the salesmen problem of trying to meet the required 30 calls a week. In the end, even the sales quota per month set by Blitz will be achieved. The result of the model will provide the routing schedule based on the number of salesmen allocation per distribution area. Finally, with the implementation of the three mathematical models, the company will benefit an amount of P 93,171.60.