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NO Tableware Supply Chain

A logistics operator delivers various consumables (dishes, packaging) to fast-food restaurants.

The supply chain comprises:

  • 3 suppliers
    • Paper Tableware Supplier
    • Plastic Tableware Supplier
    • Wooden Cutlery Supplier
  • 5 distribution centers
  • 40 customers (fast-food restaurants)

In this example we are using custom constraints to limit the choice of DCs for each supplier and each customer to 1.

Distribution centers can distribute products among themselves.

The logistics operator wants to use the rate matrix for the calculation of transportation costs. The cost of transportation in rate matrix is defined per volume unit.

Demand

Customers place orders on weekly basis.

Goal

Find the optimal (cost-based) configuration of the delivery network.

Result

As a result of the experiment we obtain:

  • Cost-efficient logistics network.
  • Transportation costs based on the provided rate matrix
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