Network Optimization Tutorial
Network optimization is another analytical method of optimizing your
supply chain. We will use this experiment to find exact locations of the objects
into account the data derived from the results of the
Greenfield Analysis experiment. By the exact
locations we mean the best locations in terms of:
will convert the GFA scenario to NO type and modify it by adding the cost of opening a
warehouse as well as the cost of processing outgoing shipments in
every potentially favorable location. The Network Optimization
experiment will consider all the provided data to find the best solution.
- Real transportation costs
- Operational costs
The experiment allows you to consider the following parameters to provide accurate results:
Note: Network Optimization does not take into account any dynamic characteristics.
- Actual available roads (exact distances/routes between
customers and DCs/Warehouses will be considered)
- Potentially favorable DC locations
- Initial costs for opening a warehouse
- Outbound processing costs
- Transportation costs
- Other monthly expenses
Let us start this tutorial. Click the link below to get to the first phase.
Phase 1. Configure and run Network Optimization