Distribution: inventory and transport - Distribution location
5 important questions on Distribution: inventory and transport - Distribution location
Which three functions can a DC fullfill?
2. Regrouping goods (regrouping function)
3. Transferring goods to another means of transport (transshipment function)
Which 8 questions have to be awnsered before a decision can be made about establishing a DC?
- What is the nature of the goods?
- where are the supply points of the goods located?
- where are the customer located?
- what is the nature of the distribution channel?
- what means of transport are involved in the supply and distribution of goods?
- what is the maximum and what is the minimum amount of goods that the DC should be able to process per time unit?
- what level of service do we want to realise for the customers?
- what are the costs involved in transport, handling and storage?
In which two models can you divide the location model and what are there two models?
- the analytic model looks for the best location from a set of alternatives, using techniques that have been proven to determine the mathematical optimum.
- the heuristic model is slightly less complex as these work with a limited number of rules of thumb and give priority to using an acceptable amount of computer time.
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What is the centre of gravity model?
Which other 9 variables play a part in choosing the right location for a DC?
- The local labour market
- the local housing market situation
- employees wishes and requirements in case of transferring
- the presence of local or regional suppliers
- the social and cultural infrastructure
- opportunities for local financing and investment premiums
- the natural condition of construction sites and /or the availability of existing buildings
- the transport infrastructure
- environmental aspects
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