Distribution network design for product customization : case of African markets

Abstract

In the context of intense international competition, many manufacturing firms are directing their investments toward African markets to increase their market share and maintain their competitiveness in the global market. These markets are rapidly growing but require customized products. Despite their attractivity, trade flows in Africa remain low due to the poor quality of infrastructure and the lack of regional logistic ecosystems, connecting African countries through reliable and efficient services.This doctoral thesis therefore focuses on modelling and solving the problem of designing hybrid distribution networks in Africa, integrating distribution and final customization platforms. These networks incorporate, upstream, regional hubs that serve as gateways to regional markets. The postponement of final customization downstream of the logistics network reduces the delivery times and downstream distribution costs while maintaining upstream economies of scale.The methodology we suggest is based on two main areas of research:▪ The first axis aims to define the location of regional logistics hubs, based on a fuzzy multi-criteria analysis approach, which is an improved version of TOPSIS fuzzy and AHP;▪ The second axis focuses on the design of hybrid distribution networks serving highly diversified markets in Africa (for example: fertilizer markets). To this aim, we propose two new multi-objective optimization models minimizing total operating and investment costs, maximizing product proximity to markets and minimizing damage to finished products during their distribution. The first model is deterministic while the second one proposes a flexible design in response to the dynamics and uncertainty of the evolution of African markets.