location case studies
DESCRIPTION
Dr. Ron Lembke. Location case studies. Case Study: Importing from China to E. Coast. Customer Location. China to U.S. Container Rates. NY / NJ $3,600 36 days. Wilmington DE $3,950 36 days (door). Norfolk $3,600 34 days. Charleston $3,600 35 days. Atlanta $3,200 37 days (door). - PowerPoint PPT PresentationTRANSCRIPT
LOCATION CASE STUDIESDr. Ron Lembke
Case Study:Importing from China to E. Coast
Customer Location
New Orleans $3,20036 days
NY / NJ $3,60036 days
Wilmington DE $3,95036 days (door)
Norfolk $3,60034 days
Charleston $3,60035 days
China to U.S. Container Rates
Atlanta$3,20037 days (door)
Roanoke
Norfolk
Philadelphia
Baltimore
Allentown
Harrisburg
750
850
850
750
750
825
Elizabeth, NJ
350
656375
950
575 305
1125
305
780
375
305
428
888
725
265
343 295
950
Wilmington
Drayage Rates
China to Long Beach
Cincinnati $2925, 21d
Columbus $3000, 21days
Atlanta $3300, 23d
Memphis $2900, 18.5d
Murray $3350, 22d
Nashville$3300, 22d
Louisville $3050, 20d
Landbridge Data
Distribution Center Location
Minimize demand-weighted distance: distance to each customer times the volume of shipments to the customer
How many to build? Where to build?
Case Study: Retailer
Location of a 5th returns processing facility Addresses of 2125 Continental U.S. stores Location of 4 Return Goods Processing
Centers List of all return shipments from each
store, including pounds and # pallets Calculated actual highway distances from
every store to its DC
Local Streets
Transportation Cost Approx.
Current Pallets: 205,254 Current Pallet Miles: 77.9m Cost / pallet-mile 11.68 cents Pallet-Mile = 1 pallet traveling 1 mile Minimize average distance traveled
Current RCs
Dallas Realignment
Close 1 Existing RC
Summary
Transportation costs are a huge factorStreet-level approximation of transportation
distances unnecessary“Straight Line” distances are usually fine“Great Circle” distances take the curvature of
the Earth into account Both inbound and outbound costs need to
be taken into account