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GFA Cold Chain

Drugstores executive management decided to rent new facilities for its cold chain. Effective supply chain management is a complex task, which presupposes keeping inventory policies balanced, while cutting operational costs, including transportation and distribution expenses.

This problem can be solved by following the steps below:

  1. Greenfield Analysis
  2. Multi-Echelon Greenfield Analysis
  3. Safety Stock Estimation
  4. Risk Analysis

This example is the first step of the task: Greenfield Analysis is used to find optimal number of sites as well as to define the approximate locations considering minimum input data:

  • Customers locations
  • List of products
  • Aggregated demand for each customer

We consider a supply chain in England comprising

  • 100 drugstores located in the largest cities of England.

Demand for the following drugs is of periodic nature:

  • Antihistamines
  • Vitamins
  • Stomachic medications
  • Cardiac medications
  • Analgesics
  • Reliever medications
  • Ophthalmic
  • Neurological drugs
  • Cold medicines
Specifications

    The customers must be located within the range of 100km from the facilities.

Goal

Find optimal number of regional sites and define their locations.

Result

The result of the experiment offers six new warehouses located throughout England.

The data on product flows, distance coverage by demand and demand coverage by distance is given in the corresponding tables:

  • Product Flows - shows detailed statistics on the flows of the supply chain within the specified period of time.
  • New Site Locations - Shows information on all the new sites created by the experiment.
  • Distance Coverage by Demand - shows detailed statistics on the distance to cover to satisfy a certain percentage of the demand.
  • Demand Coverage by Distance (and total demand) – shows detailed statistics on the demand to satisfy within a certain distance per site created by the GFA experiment.
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