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The Art of Computer Modeling for Business Analytics by Gerald Feigin

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CHAPTER 4

Rationalizing a Distribution Network for a Chemical Distributor

4.1 Problem Motivation

A common problem that many companies struggle with is determining the right physical infrastructure to support their businesses. How many factories and distribution centers should be there, where they should be located, how big they should be, what products should be sourced from which factories, how distribution centers should be replenished, and how customer orders should be fulfilled, are some questions to be answered. Often, these kinds of questions lie dormant for long periods until some trigger event occurs that brings urgency to the matter. It may be that the company is outgrowing its existing manufacturing and distribution footprint and needs ...

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