Simulation model predicts future OPEXThe Supply Chain & Operations team at Royal HaskoningDHV was asked to develop a simulation model to map and analyse the new situation. Based on the expected annual production of the plants and the demand from the various markets, the tool makes decisions on routes and storage locations from the plants to the markets.
What was special about our solution was that it did not simply model transportation routes and costs but drew in random and unpredictable influences to decide which production facility delivers to which market, and whether to use the distribution centre or deliver direct.
We were able to predict future OPEX with and without a central distribution centre in operation. This enabled our client to make the decision whether or not to keep the distribution centre in operation, saving substantial costs.
- ClientInternational trading company, specialised in secondary/recycled raw materials
- ChallengeMap and analyse how profitable it would be to keep a distribution centre in operation.
- SolutionSimulation model predicts future OPEX with and without a central distribution centre in operation.