Network optimization software solves the complex equations that help distribution center operators determine the configuration of their supply chain networks along with the optimal number, location, and size of these centers to effectively support their business models and growth projections. Ultimately, the optimized network model is the one that generates the maximum amount of flexibility and cost savings while at least meeting, if not exceeding, required service level expectations. Sophisticated software analysis cannot do this alone. Often there are several future-state scenarios that project significant savings on paper, but may not be realistically attainable.
In the hands of a skilled practitioner, custom modeling, with its flexibility to include business rules and constraints, generates information and families of constraint-based solutions. As a result, distribution center operators are presented with a series of "best case" options from which to choose the one that is most appropriate or optimal for their business.
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