ABC's US Supply Chain: Existing, Upgraded, and Optimized Networks

This case study analyzes the US distribution network of ABC, a leading supplier of MRO products. It begins by mapping and calculating the annual cost of the existing supply network, where products from China and Taiwan arrive in Seattle and Los Angeles, are shipped to Kansas City, and then distributed to nine warehouses. The analysis then examines an upgraded network with a distribution center in Los Angeles. Finally, the study explores strategies to optimize the network, including linear programming to determine optimal warehouse locations and distribution center decisions. The analysis includes calculations of costs, identification of optimal warehouse locations, and recommendations for network improvements, such as adding a new distribution center in Los Angeles. The case also considers the impact of multiple distribution centers on the network's efficiency and cost-effectiveness.