Sourcing & Production Footprints – Product Flowpaths – Transportation Routes – Inventory Placement

Project Objectives:

  • 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?

 

 

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Evaluation of alternative strategies

  • Lowest first-cost product vs. local sourcing
  • Transportation mode selection
  • Production footprint changes
  • Inventory stocking locations and levels

“What-If” Simulation

  • Fluctuations in lead-times
  • Supply disruptions
  • Demand increases or decreases
  • Fuel-cost spikes

 

 

Benefits

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.