Production and Supply Traceability – Product Flow – Transportation Routes – Inventory Placement.
Project Objectives:
- When and where should we produce each product?
- How much inventory is sufficient to meet the requirements of my customer service?
Evaluation of Alternative Strategies
- Reducing product costs vs. Local sourcing.
- Selection of transportation mode.
- Changes in production schematics.
- Inventory locations and levels.
What If Simulation
- Delivery interruptions.
- Increase or decrease in demand.
- Sharp rise in fuel costs.
Benefits
Location-based service optimization allows you to decide "How many locations?" and "Where?" to locate production and distribution centers with the minimum number of distribution points with a defined set of service goals.
The location of a center of gravity resolves the "where" question given by the location of customers, volume of demand, and a number of documents as inputs; usually focused on the lowest-cost solution from the transportation perspective and commonly used for the complete realignment of the current footprint or to identify the best location to place the next plant.
