Logistics System’s Efficiency Enhancement: A Case Study of Naifun Jaroensub Partnership Limited

Abstract

This research aims to increase the efficiency of the logistics system for the drinking water production business, a case study of Naifun Jaroensub Partnership Limited. Currently, it is facing of a lack of transportation route planning process and method, as well as, a lack of a raw material purchasing plan. Therefore, this research was carried out as:

(1) to provide the company with a transportation route using the VRP Solver program, with the expectation that it would reduce the total distance and total time in the daily delivery of goods to customers. This will result in the customer receiving the product in the expected time.

(2) to forecast the customer's drinking water demands, which will affect the planning of purchasing empty bottles in order to achieve the lowest cost.

The results of the study found that (1) by arranging transportation routes, the daily distance in transporting the drinking water to customers was reduced by 70.8 kilometers, or 26.19%, and the total transporting time was reduced by 5.12% compared to the time with unplanned route in the past, and (2) Cost of empty bottle purchasing can be reduced by as much as 439,468 baht per year or 68.94% compared to the past.