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SIM Distribution Network Analysis

We are going to start selling home and garden products in the USA,

The supplier is located in Brazil in Rio De Janeiro.

We 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

The 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 lightning
  • 17 customers order 20 small appliances

We used the GFA experiment to find the following areas for regional distribution centers:

  • West (Nevada)
  • South (Texas)
  • East (border of Virginia, West Virginia and the District of Colombia)

Then we used the NO experiment to find the most suitable warehouse locations in every area:

  • DC Lynchburg
  • DC Reno
  • DC Austin
  • Port of New Orleans

The next step is a detailed network analysis.

Simulation experiment is used to model the actual product delivery on the GIS map with detailed statistics, which collect corresponding data during the experiment from different types of facilities involved in the supply chain scenario:

  • Service Level
  • Inventory dynamics
  • Peak capacity
  • Profit and lost statement
  • Fulfillment
  • Used vehicles
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