Modeling Freight Consolidation in a Make-to-Order Supply Chain: A Simulation Approach

Shipment consolidation is one of main initiatives to reduce CO2 emissions and transportation cost. It reduces the number shipments per customer costs by using larger shipments. This paper investigates temporal process in a central center make-to-order supply chain. research was motivated case study design furniture company that has many suppliers customers large parts Europe. Simulation used check effect new special time-based on response time outbound logistics. A soft delivery deadline less than average lead because long time. Arena Software model chain order find best circumstances use consolidation. Results showed could be more effective when preparation with variability. The useful waiting there at least every four days. formula approximates percent reduced found. Furthermore, can without severely affecting value it problems high-mix low-volume environment overlooked previous research.