Network optimization experiment is used to provide:
- The most optimal locations for distribution or production facilities
- Product flows
- Sourcing options
The optimal solution is the best set of flows and facilities considering:
- A profit maximizing objective
- Adherence to all constraints (i.e., Production)
The experiment considers the following data:
- Location of suppliers, customers, existing and potential facilities, and paths between the supply chain elements.
- Product flows.
- Product storages.
- DC fixed / variable costs, and transportation costs.
- Time periods.
the experiment does not take into account any dynamic characteristics.
Network optimization experiment uses the following tables as the basis for the inventory and sourcing policies:
- Product Storages — the table defines parameters configuring inventory stock.
- Product Flows — the table defines parameters configuring sourcing.
To create an experiment you need to previously create at least one scenario.
How can we improve this article?