Delivery Network Design

The objective was to satisfy delivery lead-times requirements, whilst otherwise minimising:

• the variable costs of fuel, vehicle maintenance and salaries
• the overhead costs (management, rent, rates, minimal fleet overhead) associated with running a depot

An optimising depot location program was used:

• the customer delivery requirements were specificed (using historic data) and they were located geographically.
• The depot location software was given a number of potential depots, specified by size, costs and location.
• It was asked to determine which and how, many would be satisfy the minimal delivery requirements at lowest overall cost.