GFA Exercise_Aviral Chaturvedi_F20010

Green Field Analysis Case Study: Facility Location Planning

Suresh, a supply chain manager at a German-based retail network, needs to decide where his
company should build their new distribution centers and how many centers they need to open
to minimize supply chain costs. The data he needs for his analysis are the company’s:
● Customers and their geographical locations
● Products and measurement units
● Customer demand
● Per-kilometer transportation costs
● Distances in the supply network

He began gathering the data by asking sales and marketing managers to estimate the annual
demand from customers in different regions and then grouping those regions into ten major
markets. Afterward, Suresh asked the transportation manager to estimate the company’s
shipment costs.
In this case study, we’ll use anyLogistix to help Suresh improve the distribution center
network. The following steps will show you how to:
1. Create a scenario and define the supply chain’s structure and parameters [CO1]
2. Define the supply chain’s customer demand, transportation and sourcing policies [CO2]
3. Parametrize the sites and policies [CO2]
4. Perform the Green Field Analysis experiment to determine the best locations for one or
many warehouses [CO3]
5. Create a KPI dashboard and collect statistics on supply chain performance [CO4]
6. Simulate the supply chain design with the new greenfield locations and determine their
impact [CO4]

GFA EXPERIMENTS:
Discussion Questions:
Configure the GFA experiment for 10 indian cities and run the following:

1. What are the KPI values for Service Level, Profit, Revenue, Total Cost when Desired
number of sites = 1? Include any other relevant KPI as you wish.
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2. What are the KPI values for Service Level, Profit, Revenue, Total Cost when
maximum service distance is 300km? Include any other relevant KPI as you wish.

3. What are the KPI values for Service Level, Profit, Revenue, Total Cost when
maximum service distance is 150km? Include any other relevant KPI as you wish.
 GFA Exercise_Aviral Chaturvedi_F20010

4. What are the KPI values for Service Level, Profit, Revenue, Total Cost when order
interval for all customers demand changed from 5 to 2?

5. What are the KPI values for Service Level, Profit, Revenue, Total Cost when order
quantity for all customers demand changed from 10 to 25?

Interpretation:
 With reference to scenario no. 1, there is no change in revenue in scenario 2.
Whereas, the total cost gets reduced, leading to reduction in losses. Hence,
limiting travel distance to 300 km is more feasible than having a single hub for the
given network.
 Constraining travel distance to 150 km in scenario no. 3 does not result in
increased revenues but results in far less losses w.r.t. scenario no. 2. Thus, 150 km
limit is more optimal than 300 km limit on travel distance for the given network.
 On comparing scenario no. 4 with scenario no. 1, we observe that more revenue
can be earned but this benefit is overshadowed by a higher increase in total cost
 GFA Exercise_Aviral Chaturvedi_F20010

leading to more than twice the loss w.r.t. scenario no. 1. Hence a lower order
frequency is not a feasible proposition for the given network.
 On comparing scenario no. 5 with scenario no. 1, we observe that more revenue
can be earned but this benefit is overshadowed by a higher increase in total cost
leading to more than twice the loss w.r.t. scenario no. 1. Hence a higher order size
is not a feasible proposition for the given network.