Impact of Transportation System in Logistics Chain: A Case Study of Dairy Company
Keywords:Logistics chain, transportation system, transportation cost, shortest route, algorithm
A supply chain consists of the organization, people, resources, and information involved in moving
a product or service from supplier to customer. Transportation is the major function of a supply
chain, which provides the movement of products. The purpose of this paper is to analyze the
impact of transportation systems on the logistic chain of the dairy company. The collection of milk
is a major problem still faced by the dairy sector. Bridging the gap between costs and routing
problems simultaneously by forming an effective and efficient route of milk collection network
for the dairy processor is a problem faced by the dairy sector in Pakistan because a major part of
the cost is associated with it. Previous work has not considered such a real scenario with 62 milk
collection centers. This research was considered to describe the importance of transportation
systems in the logistics chain to logistics managers, planners, transportation managers so that
comprehensive procedures can be made and implemented for reduction of transportation cost of
the company to improve the logistics chain. For this, the technique of operations research
including minimum spanning tree was used to obtain optimized results.
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