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Abstract

In this research, we examined the behavior of transportation costs during supply chain complexity events, in particular, new product launches in the distribution network of an FMCG manufacturer. We analyzed the cost-to-serve a customer in the network, recommended a method for picking the lowest transport cost factory and analyzed how these costs change with carrier mix and seasonality. This should enable transportation planners make better transport allocation decisions. Finally, we recommended strategic, tactical and operational steps for managing transportation costs during complexity events.

Authors: Jose Fernandez and Henry Okafor
Advisor: Dr. Chris Caplice

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