By Cobena June 22, 2020
Distribution warehouse location optimization
OpportunityDistributor warehouse locations have been strategically placed in key centers of economic activity to maximize the operational efficiency of the client’s national distribution network. Because warehouse locations have been based on economic conditions more than 7 years prior to the project, there is a need to validate whether the current warehouse locations are still in key centers of economic activity today.
ApproachDeveloped a mathematical model that represents the current distribution network and identified the optimal placement of warehouse and resupply point sites to achieve the following objectives: (1) Minimize the travel time to reach covered accounts, and (2) maximize the amount of sales within a 30-, 45-, and 60-minute travel time radius.