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NO Warehouses VS Cross-Docks Optimization

We will consider the supply chain in the United States comprising:

  • Cross-dock in San Diego supplying warehouses
  • Warehouses supplying 10 customers on the territory of the USA

The supply chain deals with fish tin:

  • Tuna
  • Clams
  • Crabmeat
  • Sardines
  • Shrimp
  • Oysters
Restrictions
  • IF the product throughput from supplier to site or from site to site is greater than 0, the required product inventory is 50
  • A site’s Max Stock is 150
  • No transportation cost between supplier and sites
  • Transportation cost between sites is less than transportation cost between sites and customers
Goal

Define which of the sites are cross-docks and which are warehouses considering restrictions.

Solution

We will indicate every product flow (from supplier to the sites, between the sites) and every product storage for all sites as Custom Constraint. Then we will set limit in the Linear Ranges table for every Custom Constraint, and finally we will define described conditions in the Indicator Constraints table.

Result
  • The Denver site does not supply any customer, it only forwards three products to Casper and Albuquerque.
  • Sites in Salt Lake City, Kansas City, Dallas, Casper, and Albuquerque are used as cross-docks for half of the products and as warehouses for the rest of them.

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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