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GFA US Distribution Network

We plan to start selling home and garden products in the USA.

We will consider a supply chain with 70 customers on the territory of the United States.

The supply chain deals with five products:

  • Lighting
  • Large home appliances
  • Furniture
  • Gardening equipment
  • Small appliances

Demand is periodic, i.e., certain volume of products is ordered every 5 days:

  • 16 customers order 16 furniture
  • 18 customers order 4 gardening equipment
  • 18 customers order 12 large home appliances
  • 15 customers order 8 lighting
  • 17 customers order 20 small appliances
Goal

Find locations for the regional distribution centers.

Specifications

The ordered products must be delivered to customers within 2 days, which means the customers should be located within the range of 1000km from the facilities.

Result

The result of the experiment with the optimal DC locations is available in the New Site Locations. The distribution centers are located in:

  • Nevada
  • Oregon
  • Texas
  • West Virginia

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.
  • 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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