A rational procedure for reorganising a commercial distribution system: with special reference to the distribution of petroleum fuels in Ceylon

This study establishes a method of analysing a physical distribution system with a view to rationalising its structure and minimising overall costs of distribution. The technique is demonstrated with a real case involving one central source, thirteen existing depots, seventy-two potential depots and 613 centres of demand. It is, however, flexible enough to cope with considerable variation in these numbers and to handle the design of a 'grass roots' system. The results of the analysis indicate the number and location of depots in the ideal pattern, from which can be deduced the changes, if any, that are required in the existing network. [Continues.]