Increased Profits through Improved Physical Distribution Productivity

This article reports on research into the transportation cost element of physical distribution in an Australian packaging materials company. The authors describe how mathematical programming was applied to rationalise the allocation of customers between the company's two plants. The outcome of this research was twofold. Firstly, transportation costs were reduced. And secondly, as a by‐product of the exercise, the marketing research analyst demonstrated to the managerial decision makers the potential contribution that management science could make to their decision making. Thus, a link was forged between the management scientist and the manager.