DISTRIBUTION PLANNING Over the last few years, the demand placed on the distribution and logistics departments of manufacturing and marketing organizations has been continuously intensifying due to pressure from increased competition, introduction of new manufacturing methods, and increased expectations from partners and consumers in terms of low price and high service levels. Therefore Xtra One Food Industry is looking to increase their customer service levels while reducing inventory, working capital requirements and distribution costs. Distribution planning is a systematic process to make the delivery of goods more efficient by determining which goods, in what quantities and at what location is required to meet anticipated demand. Distribution planning is a time-based approach that determines when inventory is likely to be depleted and plans replenishment to avoid shortages. It uses a tree-like structure where a central facility, such as warehouse supplies regional facilities which then supply other facilities in the tree. This structure can contain any number of layers. The goal is to minimize shortages and reduce the costs of ordering, transporting and holding the goods. Xtra One Food Industries Company (XOFI) has contracts with distributors for some of their products. This is because they want to make sure that the items required by …show more content…
Likewise, this company's do distribution of their products once a month to their customers. However, distribution is also possible if customers need products before they enter the next month. Products that have been delivered by the supplier to the company will be separated before distributing it to each store. Product delivery will be delivered by a transport company or through their existing agents. Delivery only involves overnight. Therefore, their customers do not have to wait long for their products to arrive at the