GFA Cold Chain

Effective supply chain management is a complex task, which presupposes keeping inventory policies balanced, while cutting in operating costs, including transportation and distribution expenses. That’s why drugstores executive management decided to rent new facilities for its cold chain.

This problem can be solved by following the steps below:
  1. Greenfield Analysis
  2. Multi-Echelon Greenfield Analysis
  3. Safety Stock Estimation
  4. Risk Analysis

This example is the first step of the task: Greenfield Analysis is used to find optimal number of sites as well as to define the approximate locations considering minimum input data:

We consider a supply chain with 100 drugstores located in the largest cities of England. Demand for the following drugs is of periodic nature: antihistamines, vitamins, stomachic medications, cardiac medications, analgesics, reliever medications, ophthalmic, neurological drugs and cold medicines.

The goal is to find optimal number of regional sites and define their locations. These sites will supply pharmacies knowing the maximum distance between drugstores and facilities.

The result of the experiment offers six new warehouses located throughout England. The data on product flows, distance coverage by demand and demand coverage by distance is shown in the corresponding tables.

 

 

Related topics

Importing examples 

Running the GFA experiment