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Title: Transportation Cost Reduction for Herbal Product Distribution: A Case study in Prachinburi Province
Authors: Kanchanasuntorn, Kanchana 
Maisopha, C. 
Chancharoen, P. 
Singhawiboon, W. 
Issue Date: 2007
Publisher: University of the Thai Chamber of Commerce
University of the Thai Chamber of Commerce
Source: Kanchana Kanchanasuntorn, C. Maisopha, P. Chancharoen, W. Singhawiboon (2007) Transportation Cost Reduction for Herbal Product Distribution: A Case study in Prachinburi Province. UTCC Engineering Research Papers.
Journal: UTCC Engineering Research Papers
Abstract: As herbal product is one of the most importantproducts of Thailand development project. Thisstudy aims to reduce distribution costs of avariety herbal products produced in the eastpart distributed to the metropolitan of Thailandor Bangkok area. As the current finishedgoods warehouse situated in the Prachinburiprovince make a long delivery route, thisstudy suggests a new warehouse closer tocustomers.Form preliminary data collection involve ofproduct delivery in Bangkok area, it shows thehigh delivery cost. Solution calls for a newadditional warehouse in Bangkok situated inChatuchak area according to its mostappropriate performance from various factorperspectives. Factor analysis technique basedon weight-scored method is applied to comparebetween several sites. After decision, deliverycost for new situated facility is calculated withthe same method applied to that of presentdelivery method. The delivery cost of newmethod are then compared to that of thecurrent method.The study results show that the new facilityoffers delivery costs reduction by 50.82%.Although, considering the other expendituremight show a small cost reduction, the other benefits effect in long term. These includeproximity to customers, short delivery leadtime, increasing of customer and demand andfuture increasing of oil price; makingdelivery from Prachinburi province toBangkok area inhibitive expensive.
ISSN: 1906-1625
Rights: This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
Appears in Collections:EN: Journal Articles

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