A Project Report On

“Merge in transit, a distribution method in the industrial environment” In the partial fulfilment of the Degree of Master of Management Studies (Operations) under the University of Mumbai By

Miss Mohapatra Priya Prabhat Class & Roll No: MMS A 37

Specialization: Operations Batch: 2013-15 Under the Guidance of

Prof. Unmesh Alawani (Internal Guide)

Guru Nanak Institute of Management Studies and Research Matunga, Mumbai-400019 Mumbai 2015

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DECLARATION

I, Miss Priya Mohapatra student of M.M.S. ‘A’, Roll no. 37 of Guru Nanak Institute of Management Studies, hereby declare that this project report under

“Merge in transit, a distribution method in the industrial environment” under guidance of Prof. Unmesh Alawani is a record of my

the title

original work done as a part of my study. All information in this document has been obtained and presented in accordance with academic rules and ethical conduct

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PROJECT GUIDE CERTIFICATE FORM

This is to certify that the dissertation submitted in partial fulfilment of the requirement for the award of MMS / PGDM of the University of Mumbai is a result of the bonafide work carried out by

Miss. Priya Mohapatra under my supervision and guidance no part of this report has been submitted for award of any other degree, diploma fellowship or other similar titles or prizes. The work has also not been published in any scientific journals/ magazines.

Date:

Name:

Place:

Roll No.:

Name of the Guide:

Signature of (Project Guide)

Director’s Signature:

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Table of Contents 1 Introduction..........................................................................................................................6 1.1 PROBLEM AREA 1.2 PURPOSE 1.3 DELIMITS 2 Methodology..........................................................................................................................9 3 Theoretical framework......................................................................................................11 3.1 DISTRIBUTION CHANNELS 3.1.1 Manufacturer storage with direct shipping or drop shipping 3.1.2 Manufacturer storage with direct shipping and in-transit merge 3.1.3 Distributor storage with package carrier delivery 3.1.4 Distributor storage with last mile delivery 3.1.5 Manufacturer or distributor storage with customer pickup 3.1.6 Retail storage with customer pickup 3.2 PROCESS IMPROVEMENT WITHIN DISTRIBUTION CHANNELS 3.3 MIT EFFECTS, REASONS, PERFORMANCE COMPARISON 3.3.1 Effects of MIT 3.3.2 Drivers of the effects of MIT 3.3.3 Key concepts within MIT 3.3.4 Comparison between MIT and central and local warehouses approaches from a different prospective 3.3.5 Motivation 3.4 A MODEL TO SUPPORT COMPANIES IN THEIR CHOICE OF SUITABLE DISTRIBUTION CHANNEL 3.4.1 Scenario construction 3.4.2 Evaluation of the scenario 3.4.3 Implementation of information system and evaluation of the product centric control 4 Analysis................................................................................................................................33 4.1 DISTRIBUTION CHANNELS 4.2 MERGE IN TRANSIT: DEFINITION OF THE MODEL 4.3 BUSINESS SUITABILITY 4.4 ORGANISATION REQUIREMENTS 4.5 FURTHER SUGGESTIONS 5 Conclusions and discussions...............................................................................................42 6 References..........................................................................................................................44 7 Appendix: calculation model for delivery costs..............................................................46 7.1 ORDER PICKING 7.2 TRANSPORTATION 7.3 CONSOLIDATION 7.4 ORDER RECEIVING 7.5 WAREHOUSING

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