NO (Network Optimization) is a Network Optimization simulator that compares the location of the facility, the volume in charge, and the storage facility for each product. We look at both the reduction in facility operating costs and the additional transportation costs.
Review data and results
| analysis | Preparation materials | Results to check |
|---|---|---|
| current cost | Quantity, unit price, facility operating cost, trunk line/delivery cost | Current network cost structure |
| facility reorganization/candidate site | Center location/CAPA/add/relocate alternatives | Changes in cost and volume allocation |
| RDC quantity | Store in charge, demand by store, RDC CAPA | Store transfer and overload/idle capacity |
| Inventory by product | Number of days of inventory, product volume, storage price, trunk cost | Storage facility and storage/transportation cost alternatives |
Examples and Originals
Company B network reorganization · Company I transportation/facility simulation
Pages 38-41 of the attached PDF explain the concept of adding facilities, regions, and changing networks in NO, page 48 explains the case of Company B, and pages 67-69 explain the analysis of Company I. Inventory placement by product is NO analysis area of product description, and the above case does not mean that all its functions have been verified.
