A cost-efficient method to optimize package size in emerging markets

H.M. Gamez-Alban, O.C. Soto-Cardona, C. Mejia Argueta, A.T. Sarmiento

Research output: Contribution to journalArticleAcademicpeer-review

15 Citations (Scopus)
7 Downloads (Pure)

Abstract

Packaging links the entire supply chain and coordinates all participants in the process to give a flexible and effective response to customer needs in order to maximize satisfaction at optimal cost. This research proposes an optimization model to define the minimum total cost combination of outer packs in various distribution channels with the least opening ratio (the percentage of total orders requiring the opening of an outer pack to exactly meet the demand). A simple routine to define a feasible start point is proposed to reduce the complexity caused by the number of possible combinations. A Fast-Moving Consumer Goods company in an emerging economy (Colombia) is analyzed to test the proposed methodology. The main findings are useful for emerging markets in that they provide significant savings in the whole supply chain and insights into the packaging problem.
Original languageEnglish
Pages (from-to)917-926
JournalEuropean Journal of Operational Research
Volume241
Issue number3
DOIs
Publication statusPublished - 16 Mar 2015

Keywords

  • Innovative application in OR
  • Integer programming
  • Packing
  • Supply chain management
  • Emerging markets

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