We consider a supply chain with three beef stations which supply meat to the customers from Australia. The demand is estimated in the following way: we assume that in average people consume 43 kg of beef per year. The customers are located in the 100 largest cities of Australia, and we assume that the supply chain covers 10% of the total demand of the cities.
Our goal is to find the best places for 4 distribution centers considering movement on roads as well as known locations of suppliers and customers. We want the distribution centers to be located in cities with minimum population of 5,000 people. We also assume that cost of transportation from suppliers to distribution centers is twice less than teh cost of transportation from distribution centers to customers.
We do not deal with absolute value of the transportation cost, but the ratio of transportation cost applied to two echelons is important because it affects the optimal locations of the distribution centers.
The result of the experiment contains distribution centers located in the following cities: Perth, Alice Springs, Brisbane, and Bendigo. The data on product flows, distance coverage by demand and demand coverage by distance is shown in the corresponding tables.
Importing examplesRunning the GFA experiment