Several Central Warehouses to Supply the Multiple Distribution Centers - IT/Computer Science Assignment Help

Assignment Task:

Task:

Final Project
DISTRIBUTION NETWORK DESIGN
The company is located in a European country, produces three major brands of products, and holds different SKUs per day (stock keeping unit). Its network includes several production locations (plants), several central warehouses to supply the multiple distribution centers (DC) of various retail companies and a large set of geographically scattered retailers. In such a network, products are transferred from plants to their warehouses, from warehouses to DCs, and from there to retailers. The company is reviewing its distribution network system in Germany, looking for ways to improve customer responsiveness and simultaneously reduce the system costs. Thus, as a member of the company logistic team, your goal is how to best redesign its distribution network in Germany.
BACKGROUND
The given network consists of 1 manufacturing sites, 1 plant warehouse, 3 regional distribution centers, and approximately more than 200 retailers spread over the country. From the plants’ warehouses the goods are shipped to the regional distribution centers from which they are delivered to the retail stores. The regional distribution centers are located in the network to help for pool risk and consolidating shipments from the plant warehouses. The company ships products from DCs, typically daily for each customer. Figure 1 illustrates the company’s current supply chain DCs and retailers. A truck can carry a maximum of 33 pallets and a pallet consists of 20 boxes. There are both fixed and variable components of a truck’s shipping costs: the fixed cost is €100 per truck shipment, and the variable cost depends on the distance between DCs and retailers in a factor of €0,15 per km.
Figure 1: Locations of Customers and DCs
The attached spreadsheet contains data available for your analysis. There are three tabs.
Customer_info – This tab contains all of the relevant customers parameters such as location, mean demand (boxes) and standard deviation of daily demand (boxes). The location is described both as city and latitude/longitude.
RegionalDC_info – This tab shows the regional distribution center (RDC) that are currently used. Also, the relevant inventory, transportation and operating costs that correspond to each of the RDCs are listed as well.
DistanceCalculator – This tab allows you to calculate great circle distance using latitude and longitude between any two points.

Figure 2: Current Supply Chain Network
PROBLEM
As a member of the company supply chain project team, the question involves the redesign of distribution network so that both a higher customer service level is achieved and total operating costs are reduced. More specifically, your goals answer the following questions that should be addressed in distribution network:
Which retailers should be served from which DCs?
What is the current cost of the existing distribution network? You need to model the current solution. Be sure to provide details as to the cost of transportation, inventory, and facility cost etc.
What are the inventory control parameters (reorder point and order quantity) of each DCs under continuous review inventory policy?
Should the company close RegionalDC-3 and open two new DCs as shown Figure 3 (RegionalDC-4 and RegionalDC-5)? Justify your decision with specific estimates of costs, service factor impact, and any other issues that should be considered.

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