This study considers the distribution network of a wellknown perishable food manufacturer and its franchises in Turkey. As the countrywide number of stores is increasing fast, the company is facing problems due to its central dis- INTRODUCTIONProduction, handling and distribution of food and confectionary products demands a precise, climate-controlled environment, as well as facilities that will guarantee safe and reliable storage to protect the integrity of the goods. While the cost of transportation is considered as a major factor in the distribution of such perishable goods, the quality and timely delivery are also fundamental.The case study considered in this paper involves one of the largest confectionary franchise chains in Turkey, founded in 1938. The factory currently produces 60 thousand servings of cakes, 150 thousand servings of milk puddings, 20 thousand servings of syrupy desserts, 7 tons of ice cream, 300 kilograms of handmade chocolate and 5 tons of pastry products daily. In addition to this product range, the brand offers yogurt varieties and buttermilk. At the time of the study, the company has been distributing its products to 179 franchise stores (dealers) in 46 cities, as well as some big supermarket chains. With its 3,000 employees, the company has a factory site of 10,000 m² and a cold storage warehouse of 1,500 m² in Izmir, Turkey. Besides the main facilities in Izmir, there are two warehouses Ankara and Adana, and three cross-docking centres in Istanbul, Antalya and Bursa.Based on company management information, the transportation costs arising from distribution is a major cost component due to the centralized infrastructure. As the number of dealers grows, the total length of the distribution routes increases, which is currently around 350,000 km/month. Timely delivery, which is most crucial in perishable goods, is also affected as a result of this growth. Therefore, the main goal of this study is to minimize the total transportation cost of timely delivery for the defined distribution network.Currently, the company employs a third party logistics provider (3PL) for distribution, and pays on the basis of travelled distance. The distribution is completed in two hierarchical phases, on macro and micro levels. The macro-level distribution involves the direct shipment of the consolidated demand of a cluster of cities to the related warehouse/cross-docking centre from the main facilities of the company, using 12 high-capacity vehicles of 2 different types.
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