Supply chain modelling using world leading software

A European domestic appliance manufacturer wanted to verify the location of a single DC and assess a two DC solution.  We built a model with the Infor Network Design system based on deliveries into countries across Europe.  Transport was carried out by a multitude of carriers, so delivery cost tables were synthesised from historic shipments.

The optimal single DC location was calculated, showing that the current DC was not well located from the perspective of customer demand.  The two DC solution was modelled as the existing DC plus one and as two new DCS.

When we considered the 2 DC solution, we had to respect an IT constraint that countries could only be served from a single DC.  However, we were able to illustrate that removing this constraint had a significant impact on the optimal location of the distribution centres.