Cost effective supply chain operations start by determining the optimum infrastructure. If the number and size of warehouses or cross dock facilities is incorrect or they are in the wrong place the supply chain will not operate at maximum efficiency.
For some operations the optimal infrastructure solution is relatively self evident, and easy to determine, for others arriving at the correct solution can be very challenging. This is particularly the case with operations involving international supply chains, where the trade off between transport and warehousing costs is finely balanced or the trade off between different manufacturing methods and logistics is not straightforward. To cope with the complexity of the problem many companies simplify the task, and resort to ‘averages of averages’, this can lead to important details being missed and an incorrect solution achieved.
To assist companies determine the optimum infrastructure our supply chain consultants have developed our own mixed integer infrastructure model to evaluate a range of possible operational solutions quickly and cost effectively.
Typical uses of the model include the following:
All infrastructure modelling projects commence by configuring the model to address the evaluation required. Data is normally taken at order line level in order to capture daily and seasonal variations. Costs and productivity standards can either be provided by the client or, if they are not available, we will use our own.
Once the model has been configured and populated with the necessary data it is a relatively straightforward task to run a series of iterations in order to evaluate and refine possible solutions.
Effective supply chain modelling is invaluable to improving decision making, profitability and knowing the effect on costs of introducing either tactical or strategic changes.
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Davies & Robson completed the project in a very friendly and professional manner. We agreed a project scope and timetable upfront and everything went to plan. We have already started to implement som…
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