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NO Global Distribution Network

We consider a global supply chain comprising:

  • Smartphone factory in China
  • Components suppliers in China
  • Large number of potential distribution centers that fulfill demand of 1295 customers in America (USA), Europe, and Australia
Specifications
  • Each customer orders 2 smartphones every day
  • All sites are initially closed
  • Initial costs constitute $100 000.
  • Carrying costs for each warehouse constitute $10 per cubic meter per day
  • The cost of producing one smartphone constitutes $10
  • Other costs constitute $50 per day.
Import Tariffs
Country/Product Smartphone
Europe 3%
USA 7%
Australia 8%
Canada 4%
Restriction

    One DC per continent

Goal

Find the best configuration of DCs considering transportation, initial, carrying costs, and the list of locations where we could build warehouses.

Result

The result of the experiment offers to open DC in:

  • Sidney (Australia)
  • Berlin (Germany)
  • Chicago (USA)

The Optimization Results page is opened by default. It shows the result of the experiment with all the possible combinations filtered per Profit (NetOpt) statistics column. The top record of the table is the best one.
The data on other details is shown in the corresponding tables:

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