Supply Chain Distribution network planning & inventory managment

diageo

 

Project objective
  • Choose logistic network configuration for the expanded client network
  • Show and prove the ways to decrease logistic costs
Our scope of work
  • Simulation task definition
  • Simulation model concept development
  • Development of simulation model in AnyLogic 6
  • Model validation on historical data
  • Development of scenarios and scenario analysis plan
  • Scenario analysis (experimenting with simulation model)
  • Aggregation and analysis of simulation experiments results
Simulation model inputs
  • Sales plan and forecast till year 2017
  • Distribution network structure (54 Russian regions, up to 5 distribution centers, 5 options of network configuration, 3 plants)
  • Transportation routes parameters (modality, speed, etc…)
  • Existing and prospective replenishment planning algorithms
Simulation model structure elements
  • Input data file in MS Excel format
  • Simulation model with interactive presentation and batch launch mode for fast scenario comparison
  • Data aggregation module that allows to generate MS Excel files with graphs and charts for scenarios comparison
Simulation model outputs
  • Warehouses capacities utilization
  • Dependency between service level, target stock level and logistic costs for every network configuration option
  • Service level and cost of goods sold (COGS) for every client type and product
Project result
  • Distribution network configuration selected. The selected option provides 7% decrease in COGS even with fast growth and client network expansion
  • Model demonstrated that the effect of 20% forecasting precision growth and allowed to compare it with costs needed to improve forecasting

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