anyLogistix anyLogistix
Expand
Font size

NO Global Network Optimization

We consider a supply chain with factories producing home and garden products in Xiamen and Shenzhen (China), which are provided with the required components by the supplier located in Shantou (China).

Five products are produced within the supply chain:

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

The products are purchased by customers in Africa, Asia, Australia, Europe, North America, South America, and the European and Asian parts of Russia:

  • Africa: Pikine, N’djamena and Kisangani
  • China: Huai’an, Nanchang and Guilin
  • India: Hyderabad, Chandrapur and Malegaon
  • Europe: Milan, London, Brussels and Munich
  • North America: New York, Phoenix, Denver, Indianapolis and Dallas
  • South America: Sao Paulo, Buenos Aires, Asuncion and Manaus
  • Russia: Moscow and Yekaterinburg

Product shipping to a customer can be done directly from the factory, ports, distribution centers, or from ports through DCs.

Port locations:

  • North America: Port Houston
  • South America: Port Guayaquil
  • Africa: Port Durban
  • Australia: Port Sydney
Constraints
  • Africa: products can be delivered to customers from Port Durban directly or through a DC (Pikine, N’djamena or Kisangani), but in total we can’t open less than /more than one DC.
  • Asia: products can be delivered to customers from factories directly or from a DC (Huai’an, Nanchang, Guilin (China), Hyderabad, Chandrapur, Malegaon (India)). We can use only one DC in China and one in India.
  • Australia: products can be delivered only from Port Sydney.
  • Europe: products can be delivered only from one of the following DCs: Milan, London, Brussels or Munich.
  • North America: products can be delivered to customers directly from Port Houston or through a DC (New York, Phoenix, Denver, Indianapolis or Dallas), but in total we can’t open less than /more than one DC.
  • South America: products can be delivered to customers directly from Port Guayaquil or through a DC (Sao Paulo, Buenos Aires, Asuncion, or Manaus) but in total we can’t open less than /more than one DC.
  • European and Asian parts of Russia: products can be delivered only from one of the following DCs: Moscow or Yekaterinburg.
Import tariffs
Country/Product Lighting Large home
appliances
Furniture Gardening
equipment
Small
appliances
Europe 3.70% 1.90% 6.50% 6.00% 1.90%
USA 2.60% 0.00% 5.90% 5.30% 0.00%
Australia 5.00% 5.00% 5.00% 5.00% 5.00%
Canada 7.00% 4.00% 6.50% 6.50% 4.00%
India 20.00% 8.00% 10.00% 10.00% 8.00%
Russia 9.50% 9.50% 0.00% 6.50% 9.50%
South Korea 8.00% 8.00% 6.50% 7.00% 8.00%
South Africa 10.00% 25.00% 20.00% 20.00% 25.00%
Brasil 18.00% 20.00% 16.00% 18.00% 20.00%
Peru 4.00% 11.00% 6.00% 6.00% 11.00%
Argentina 21.40% 20.00% 18.00% 18.00% 20.00%
Paraguay 9.60% 20.00% 18.00% 18.00% 20.00%
Ecuador 16.70% 20.00% 30.00% 20.00% 20.00%
Chile 6.00% 6.00% 6.00% 6.00% 6.00%
Ukraine 2.80% 3.30% 0.00% 6.50% 3.30%
Vietnam 13.80% 14.00% 20.00% 20.00% 14.00%
Goal

Determine the best shipping method for each customer considering the constraints.

Result

The result of the experiment offers to open the following DCs:

  • DC Kisangani in Africa
  • DC Nanchang in China
  • DC Chandrapur (India) in Asia
  • DC Dallas in North America
  • DC Asuncion in South America
  • DC Brussels in Europe
  • DC Moscow in the European part of Russia

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:

How can we improve this article?