Sourcing & Production Footprints – Product Flowpaths – Transportation Routes – Inventory Placement
- Where and when should we produce each product?
- How much inventory is enough to meet my customer service requirements?
- What is my actual cost-to-serve each product to each customer?
Evaluation of alternative strategies
- Lowest first-cost product vs. local sourcing
- Transportation mode selection
- Production footprint changes
- Inventory stocking locations and levels
- Fluctuations in lead-times
- Supply disruptions
- Demand increases or decreases
- Fuel-cost spikes
Service Based Location Optimization allows models to decide “how many locations” and “where” to locate production and distribution centers with the fewest number of distribution points within a defined set of service goals.
Center of Gravity Location solves the “where” question given customer locations, demand volumes and number of DCs as inputs; often yielding the lowest cost solutions from a freight perspective and often used for completely realigning the current footprint or identifying the next best location to setup a facility.