NO DC Size Selection

We consider a supply chain with DC in Topeka. It supplies 100 customers in the USA. The demand for lamps is proportional to the population of the cities. The network model may consider 3 DC facilities with different size: 1200 sq m, 1800 sq m. 2400 sq m (sites can hold 600000, 900000 or 1200000 pcs of lamps respectively), each with fixed investment, carrying, maintenance and throughput costs:

Throughput costs are proportional to the product flows.

The goal is to select the most suitable DC size to invest in.

The result of the experiment contains warehouse of 1800 sq m that suits us.

 

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Running the NO experiment