A Feasibility Study on Applying Logistics Routes of a Distribution Center by Using Simulation Techniques with a Program Case Study: Thailand Post Distribution Company Limited

Abstract

The objectives of this study were 1) to study the feasibility study on applying logistics routes of a distribution center 2) to study the transportation and distribution model of the Thailand Post Distribution Co., Ltd. 3) to apply the appropriate tool to applying logistics a distribution center routes and 4) to compare the cost of transportation of goods at the original distribution center and after an Applying Logistics Routes new distribution center location. The scope of the study focuses on product demands, transportation distance information and the total cost of the distribution center (THPD Chumphon Prof.) during December 2022.

The research results found that if Thailand Post Distribution Co., Ltd. establishes a new distribution center (Kok Kloi Prof.) in Phang Nga Province, it can reduce the cost of transportation and distribution. The most suitable model that can reduce the cost of transportation and product distribution is model 2, which can reduce the distance to 1,868.38 kilometers per day and 56,051.40 kilometers per month. And can reduce transportation costs by 16,320.30 baht daily and 489,608.98 baht monthly or 49.75 percent. However, if the company chooses the 2nd model, the cost of the new distribution center (Kok Kloi) must be calculated as well, when including all the costs of the 2nd model, will have a cost of 527,728.98 baht per month.