GFA Europe Distribution Network (GIS Routes Applying)

We consider a scenario with three suppliers (located in Bergen, Goteborg, and Helsinki), which deliver products to the customers in Norway, Denmark, Germany, Poland, Latvia, Estonia, Finland, and Sweden. The supply chain deals with two types of aggregated products: chilled fish and frozen fish. To estimate the demand, we will assume that in average people consume 4 kg of frozen fish and 16 kg of chilled fish per year. The customers are located in the 150 largest cities of the countries listed above, and we assume that the supply chain covers 15% of the total demand of the cities.

The goal is to find the best locations for 5 distribution centers considering movement on roads and sea routes as well as known locations of suppliers and customers. We want the distribution centers to be located in the cities with the minimum population of 50,000 people. We also assume that the cost of transportation from suppliers to distribution centers is twice less than from distribution centers to customers. We do not deal with absolute value of the transportation cost, but the ratio of transportation costs applied to two echelons is important because it affects the optimal locations of distribution centers.

The result of the experiment contains distribution centers located in the following cities: Bergen, Helsinki, Charlottenburg, Hamburg-Mitte, PÅ‚ock. The data on product flows, distance coverage by demand and demand coverage by distance is shown in the corresponding tables.


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