NO Global Distribution Network

We consider a supply chain with a smartphone factory, it’s suppliers located in China, large number of potential distribution centers that fulfil demand of 1300 customers in America (USA), Europe, and Australia. Each customer orders 10 smartphones every 5 days. All sites are initially closed, its initial costs constitute 300000$. Carrying costs for each warehouse constitute 10$ per cubic meter per day. The cost of producing one smartphone constitutes 10$.

We want to find the best configuration of DCs (opening only one DC per continent) considering transportation, initial, carrying costs, and the list of locations where we could build warehouses. This task can be accomplished by the NO experiment (Network optimization experiment is used to exact locations for the distribution centers/warehouses).

The result of the experiment offers to open warehouses in Sidney, Berlin, and Chicago. The data on product, production flows, all costs etc. is shown in the corresponding tables.

 

Related topics

Importing examples 

Running the NO experiment