Design And Control of Multi Location Distribution Systems

Cover Design And Control of Multi Location Distribution Systems
Design And Control of Multi Location Distribution Systems
Donald B Rosenfield
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The choice between the two options) moreover) can have an enormous impact on facility requirements. This latter point is also best illustrated by a case study. The author was involved in a location study for a major consumer goods manufacturer. At the time of the study) the East coast factory and warehouse serviced SD7. Of the country) and the west coast sate I I i te serviced 20% of the country. The purpose of the study was to evaluate and recommend additional locations for warehouses.
One of
...the keys to the analysis was that the product was a high-value> low-weight product for which inventory costs were dominant. It became clear fairly early in the analysis that the distribution cost analysis would require identification of the specific inventory deployment strategy. Ue then simulated the inventory levels of each and every product of the company for both a central and satellite inventory deployment strategy.
The results of the simulation are presented in Table 1. Note that wh i I e the net inventories of the two approaches are not vastly different) there are very different allocations of inventory.


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