NO US Distribution Network

We are going to start selling home and garden products in the USA, so we consider a supply chain with 70 customers within the United States. The supply chain deals with five products: lighting, large home appliances, furniture, gardening equipment and small appliances. The demand is of repetitive nature, certain volume of products is ordered every 5 days:

We used the GFA experiment to find the following areas for regional distribution centers: West (Nevada), South (Texas) and East (border of Virginia, West Virginia and the District of Colombia).

The next step is to find the most suitable warehouse locations in every area, so we will choose three nearest cities for each site the GFA result offers.

We also want to choose a port, which will be a transshipment base between supplier in Brazil and regional DCs. We can use the services of the following ports: New York, Houston, Oakland, Seattle, Charleston, Long Beach, Los Angeles, and New Orleans. Some customers can be supplied directly by the port we will choose. The cost of transportation in this case will be higher.

The result offers 10 the most profitable warehouse locations. The best choice is to open DCs in Lynchburg, Reno, Austin, and use the Port of New Orleans for transshipment. The data on Product flows, all costs and storage by product is shown in the corresponding tables.


 

Related topics

Importing examples 

Running the NO experiment