Based on the view that an efficient supply chain management can derive the customer satisfaction, developing strategies about the scale and location of distribution center(DC) is a very important decision making. In addition, the strategies can lead to a long term vision of corporate and also maximize customer satisfactions.
This paper is analyzing the existing DCs' location and cost which belongs to 'D' grocery company operating in Korea. Finally, it proposes the alternative DCs location, which reduces the logistics cost and improves the logistics efficiency. What is an object in this paper is that proposing the useful way for relocating and establishing DC in company.
In relocating DCs of 'D' grocery company, there are 3 ways. The first is reducing the number of DCs in an economic region by consolidating DCs the last is closing the leasing DCs and merging with owning DC.
As a result with this thesis, it is possible to save a transportation cost and operation cost of 'D' company. Based on the practical way, it is estimated that the logistics cost would be reduced about 2.4 billion won monetarily in a year. Regarding the logistics cost of 'D' company about 34.6 billion won in a year, it cuts 7.0% down of total logistics cost. the second is reducing the number of DCs between the economic regions by consolidating DCs