Optimization of the production and distribution network
Problem
The network of factories and warehouses is not sustainable and not actively managed to meet markets demand.
Objective
Balanced supply and demand ensuring the required level of service at the lowest cost. Ability to quickly respond to changes in demand or supply.
Methodology used
Balance of supply and demand, gap analysis, removal of bottlenecks, network optimization under specific constraints.
Approach
Based on sales forecasts, production capacities and distribution/production costs, an optimal distribution network structure is calculated. The calculation indicates the balance of the supply and demand in a specific region. Mirroring the optimal network with the current network allows to identify white spots. As a consequence proposals for the location and dimensions of production facilities are created in order to eliminate these white spots.
Delivery
A map with white spots, proposals to close them with corespnding finacial impact. Tools supporting short-term decision-making based on supply and demand forecasts. Support in the preparation of investment proposals.
