Professional Documents
Culture Documents
Case Study:
Study:
PDQ
PDQ Office
Office Products
Products
U.S.
U.S.Distribution
DistributionStrategy
Strategy
1
Contact information
Norcross, GA 30071
(678) 327-2000
2
Table of Contents
ÿ Project Overview
ÿ Demand Analysis
ÿ Customer Locations
ÿ Network Model and Baseline
ÿ Scenario Evaluation
ÿ Summary and Recommendation
ÿ Appendix
3
Project Overview
4
Project Background
5
Project Objectives
Peach State and PDQ agreed on the following project goals and
objectives to ensure success.
ÿ Examine the historical demand: Build profiles of typical customer orders to understand the
current network.
ÿ Project future demand: Identify key markets that will be served in the future.
ÿ Rate the current network: Detail the service levels that can be achieved with the existing
facility.
ÿ Design a network for the following scenarios:
ÿ Baseline – Central NJ only
ÿ How many DC’s to reach 100% of the US in 24 hours?
ÿ Best 1, 2, and 3 DC networks (3 scenarios)
ÿ Best Central NJ + 1 DC network
ÿ Best Central NJ + 2 DC network
ÿ Identify service levels: With each scenario, calculate how many customers can be served in
1 day, 2 days, or more.
ÿ Review existing warehouse: Make recommendations around space efficiency and process
improvements.
6
Project Approach & Methodology
7
Demand Analysis
8
Demand Analysis
9
Orders per Day
10
Shipment Volumes
11
Activity Levels Per Day
12
Shipment Mode
Parcel shipments constitute the majority of all shipments - more
than 60%.
13
Lines Per Order Profile
More than 50% of all orders were a single line only. Order
4000 60%
53%
50%
3000
40%
84% of all
2000 orders have 3 30%
0 0%
1 2 3 4 5 6 7 8 9 10 11
Lines
14
Units and Weight Per Order
15
Product Movement Profile
Velocity Profile
100%
80%
% Orders
60%
40%
20%
0%
1 192 383 574 765 956 1147 1338 1529 1720 1911 2102 2293 2484
# Products
1619
A
A
A C
A
A C
B C C A C
C
1601 1602
A A A A
B
B
A A C BA B
A
A A
A A A A A A A A A A A
A A B A B
1603
A
1604
A B
1605
A A A A
A B
A B
A A
1606
A B C A
A A A C
A A A A
A B C
A C B C
B B
A A A A A C A B
A B
1607
A B B B B
1608
B
1609
A A C
B C
A A
C
1610
A A
A A
A B
A A B A A A
A A
A A
1611
B
A A
A
A
A A B
A C A
B A A
A B A
A AA B A B
A A C A A A A A A A A
A A A A A
1612 1613
A A B A
1614 1615
A A
C
1501 1502
A B C C
A C C A A B
A C
A
A
B C C B C
1503
C C C B C C B C
1504
B B B
A B B A A
C
B
1505
A A B A B C B C
B
A
1506
A A
A B C
A
C A
C
C
A
1507
A A
A A
B
A B
B C A B
1508
A
A
A
A
B
1509
A
C
A
B
A
B
1510
A A A A
A C
A
A
C
A
1511
B
B B
A A
B
A
A
B
A
1512
B
B
B
1513
A A
B B C
A B
A A A
B B A
A
B
B
B
A
1514
B
C
B C
C
B B A C A B
B
A B A B A
A B B B A A B AA B B C C C C
C CC A B
C B
B B C A A C B B
A A B B A
B B B B B B
B C B C A B A B
B C C
A C C A A
A B A A C B A A B B B B B C C C C B B C A A B A B BB A
A C B
A B B C C A A B B C B B B B C C C A B B A B B C B C A B B
C C B C C B B C B C C A C C C B B C A A B A B B A B
1215 1216 1217 1201 1202 1203 1204 1205 1206 1207 1208 1209 1210 1211 1212 1213 1214
B B
A A
B
B
B
A
A
A
1116
C C
C
B
A
A
A
A
1117
B
A C A
C
A
B
B
1101
A B
A C
B
C
A
B A
B
B C
1102
A B B
C B
1103
B C
A C
B
B C
B
C
1104
A C
A B
A
A
B
1105
C A
B C
C B C
A
1106
A B
B C
B
C
C
A
A
1107
A C
B B
A
A
C
B
B
C
B
1108
A B
B A
A A
B
1109
A B
A
B A
A
B
B
B
C
B
C
C
A
A
A
1110
C
B C B
A
A
B
1111
B A
A
C
A
C A A
1112
A B
A A
C
B
1113
B C
A B
A
C
B
C B
A
1114
A B
A B
A
B
C C
B
B
A C
1015
A
A
A
A
B
B
C
C C
1016
A
A
A
C
B
A
A
B
C
C C
1017
A B
B
C C
C A
C B
B
1001
B A
A B B A
B A
C A
A A A A
1002
A A B
B C
B B B
1003
A
B
A B
A A
A
B
B C
1004
C
C B A
B
A B
C A
C
A B
A B C C
1005
B
B A
A C
B
B C C B
1006
B
B B B
C C
C
B
1007
B B
A B C A
A C
1008
A C
B C
A A
A
A
1009
B
C
B
A
B
B
A
B
C
A B
B B B
A
A B A A
A A A B C B
C
1010 1011
A C
B B B
1012
C
C
B
B
A
C
C C
A A
A
A
B
1013
C C
A C
C B B
B C
A B C
A
1014
C
C
warehouse.
0915 0916
A
A
B
C
A
0917
B
C
B B A
0901
B A
A B A A
A A A A A A
A A
0902
C C A A
A A
A A
A B
A
A
A B
A
B
0903
A A
A B
A B
A B
A
C
A
A A
A
0904
A C
A B
A
A
A
B
A
C
B
A A
B A
0905
A B
A A
A C
B
A C
B C
A
A
B
B
B
B
A
A
A
0906
B
B
B
A
B
A
A
B A
A
0907
A A
A C
A
B
A
B
0908
C A C C A
C A A B B
0909
A C
B C
A C
B C A
B B B
0910
A C
A C
A
B B C B
B C C
0911
B B B B
A B
C
A
0912
B C
A B
A C
B
B
B B
C
A
B
0913
B B
A B
C
A
C
C B
0914
B B
B B
C B
A C
C
A
B
C
B
ÿ A revised approach to
A B A
A C A
A B B A B A
B A B A A
B A B BB A
A A B B
A A B A A A A A B
A
B A
B B B
A C A A
A A A A
A A B B C
B C B C A
A A B BC C
A A C A B
A C C A B B B B CB A
A C B C B B
A C A C
B A A B
A C A A B B A C C B
B C C A
A C B C A
A A B BB A A C A C A B A A A A A A A AB A
A B C A B A A A
A A B C
A C A A A B A B C
0815 0816 0817 0801 0802 0803 0804 0805 0806 0807 0808 0809 0810 0811 0812 0813 0814
0715 0916 0916 0701 0702 0703 0704 0705 0706 0707 0708 0709 0710 0711 0712 0713 0714
C
A
C
A
B A
B A
A
A A
A
A
A A
A
B
C
B
B
B
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C
B
B
C
B
C
C
B B C A
B
A B A C
A A B A
B
A B
C B
B C
A C
A A
C
A
A
B A
B
B B
C A
A B
A A
B
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A A
B C
A C
A
A
A B
B
A
A B C
A A A A
B
A C
B
C
A C
A A
C
B
B
A
C
C
C
A
A B
A
A
A B
A C
B B A
A A A
A B B
A A
C
A A
A C
A
C
B
C
A
A
C
B
A C B
A
C C C A A A B A A A A B A A A A A B B C B C A B A B C A A
A C C BB B A B C C A A C B A A B A A C C A B C A A A A B C A A B A A B B B C A A A
B B B C B A B A A B B C C A A
0615 0816 0816 0601 0602 0603 0604 0605 0606 0607 0608 0609 0610 0611 0612 0613 0614
A A
B
A
A B C B
A
A A
A
A C
A
B
A A
A
B
B A
C
B
A A
A
A A
A
A
C
A
A
A
A
A
A
A
A
B
B
A A A
B
A
B
B B C
B
A A
A A
A
A B
A C
A
A B
A B C
A
A
A
A
A
A
A
A
A
A
A
A
A
C
A
B
A
A
A
B
A
B
B
A A A A A B A A A A A A A A A A A A
A
A A B A C
A C A A C
A A
A A
A A
A A
A A
A A A A
A A C A A
A A
A A
B
0401 0402 0403 0404 0405 0406
0102
0302
0202
0103
0303
0203
0304
0204
0104 0105
0305
0205
0106
0306
0206
A A A A
A A A AA A
A A A AA A
A A B AB A A
A A AA A
A A B AB A
A A A AB
A A
A A A A A A AA A A A BA A A A A A
A A A AA A
A B A CA
A B B A A A A
A
A A A
A A A
A A AA A A
A B A A
A A A A A
A A A BA
Total
Facings
= Future Addition 987 A = Fastest Moving Items
604 B = Medium Moving Items
= Current 422 C = Slowest Moving Items
17
Space and Process Improvements
ÿ Slotting -
ÿ Zone the warehouse by velocity—“A”, fast moving items = front, “B” movers = middle, “C” & “Dogs” = back.
ÿ Keep fastest moving items toward the dock & on the floor; opportunity exists to re-slot the warehouse.
ÿ Putaway – store and putaway receipts of product by velocity zone; use first part of shift to replenish floor/forward slots from reserve.
ÿ Allocate the right amount of product to a forward location; i.e., don’t tie up 3 floor slots with same product if slots
would be better served with other, fast moving SKU’s.
ÿ Continue to store items that ship together close to one another.
ÿ Operations
-
ÿ Adjust workstation layout for packing to minimize travel time between work table, terminal, printers & UPS manifest.
ÿ Evaluate increasing the size of the UPS waves to create more efficient picking tours; update system parameters as
needed.
ÿ Storage -
ÿ Rack out remaining floor space with selective pallet rack, minus space required for staging.
ÿ Creating deeper bays for longer products will only offer marginal space improvements.
ÿ Use dense storage for small cube items (e.g., more half pallet locations, bin shelving, &/or case rack).
ÿ Put mezzanine over shipping docks; returns or small cube items could be processed on mezzanine.
ÿ Rack out over dock doors to store packing materials and empty pallets.
ÿ Consolidate dead items on pallet, inventory, ID, and put in back of warehouse.
ÿ Possibly use floor storage for high cube, stackable items.
ÿ For the purposes of the network study, we assume that customers behave the same no matter
where they live in the U.S. The order size, order value, frequency, and return rates all follow
the typical customer profile.
ÿ The number of daily orders can fluctuate over a wide range. The distribution network must be
flexible to allow for this variability.
ÿ Sales have been steadily increasing in the U.S. and this trend should continue as PDQ enters
new markets. The distribution network must be able to handle this future growth.
ÿ Parcel shipments account for over 60% of the customer orders. This has been consistent over
time, and is dependent on product type. PDQ must be equally capable of meeting service
targets with both parcel and LTL shipments.
ÿ More than half of the orders are for a single product only, and 80% of the volume is driven by
the “fastest” one third of products. PDQ should examine its shipping operations to build in
efficiency. For example, single line orders could be batch picked to reduce travel time. Even
small improvements in order fulfillment methodology could yield significant results.
19
Customer Locations
20
Geographic Analysis of Demand
21
Demand Aggregation
To speed calculations, Peach State grouped demand into large
metro areas made up of several counties.
ÿ 302 Metro areas are
defined by the U.S.
Census Bureau.
ÿ 86 percent of U.S.
office workers live
in these areas.
ÿ Style conscious
consumers tend to
live in these metro
areas also.
ÿ Marketing can be
easily focused on
these dense areas.
22
Analysis of Demand
The largest 50 metro areas are used in the network study. These
areas represent 58 percent of U.S. office workers.
ÿ The network model
will focus on the
largest cities first.
ÿ This level of
aggregation allows
faster modeling
results but does not
affect validity.
ÿ Final results will be
reported using the
full 3,109 county
list and 100% of the
population.
23
Analysis of Demand
24
Network Model and Baseline
“What service can PDQ provide with its existing distribution
center in central NJ?”
25
Network Model
following assumptions.
26
Baseline Network
With just one distribution center located in New Jersey, PDQ will
not be able to meet its service targets nationwide.
27
Baseline Network
The first
scenario
includes only
the existing
facility in
central NJ.
This scenario
was used as
the index to
rate all other
scenarios.
28
Baseline Network
PDQ uses both LTL and Parcel shipments. With the existing
network, some customers can expect to wait a week for delivery.
This chart
LTL
LTL Service
Service Levels
Levels shows how long
LTL shipments
Within 99.7%
77
Within
Within 11 Day
Day Within
Within 22 Days
Days Within
Within 33 Days
Days Within 44 Days
Days Within
Within 55 Days
Days Within
Within 66 Days
Days 99.7% 100% take to reach
100%
the customer.
Customers
85%
of Customers
82%
82% 85% 90%
90%
66
73%
73% 80%
All calculations
80%
55 70% are based on 10
56% 70%
56%
60%
hours at 50
44 60%
50%
miles per hour,
50%
Percent of
33 29%
29% 40%
40%
for 500 miles
per day.
Percent
22 30%
30%
20%
20%
11
10%
10%
00 0%
This chart shows
0%
how long Parcel
11 33 55 77 99 11
11 13
13 15
15 17
17 19
19 21
21 23
23 25
25 27
27 29
29 31
31 33
33 35
35 37
37 39
39 41
41 43
43 45
45 47
47 49
49 51
51 53
53 55
55 57
57 59
59 61
61 shipments can
Hours
Hours from
from DC
DC to
to Customer
Customer take to reach the
Drivers travel 500 miles per day, based on a 10 hour shift at 50 mph. customer. The
source data
assumes UPS
If PDQ starts marketing to Parcel
Parcel Service
Service Levels
Levels Ground shipment.
100%
Customers
35 100% 100%
of Customers
78% 80%
80%
only 29% of LTL volume 25
25 66%
66%
78%
20 60%
60%
and 20% of parcel volume 20
Percent of
15
15 31%
31%
35% 40%
40%
will be within a one day 35%
Percent
10 20% 22%
22%
10 20%
20%
20% 15%
15% 12% 20%
20%
55 12%
service area from the 00 0%
0%
existing facility. 11Days
Days 22Days
Days 33Days
Days 44Days
Days 55Days
Days
Business
BusinessDays
Daysin
inTransit
Transit
Based on quoted duration of UPS Ground service.
29
Scenario Evaluation
30
Scenario Overview
ÿ One day service nationwide: How many distribution centers are needed
to reach 100% of the United States in 24 hours?
ÿ Best 1 DC network: If PDQ only has one DC, where should it be?
ÿ Best 2 DC network: Where should 2 DC’s be located? How is service
improved?
ÿ Best network with Central NJ + 1 other DC: If PDQ added one new DC
to its existing facility, where should it be placed?
ÿ Best 3 DC network: Where should 3 DC’s be located? What are the
additional benefits?
ÿ Best network with Central NJ + 2 other DCs: In addition to the existing
facility, where should two new DCs be located?
31
Scenario: One Day Service
When 10 DCs are placed to minimize cost, one day service
nationwide is still not possible.
32
Scenario: One Day Service
Distribution
centers are
located near
major
metropolitan
areas to
reduce the
overall cost of
the network.
33
Scenario: One Day Service
90%
90%
20
20 80%
80%
70%
Large geographic areas
70%
15
15 60%
60% of the country receive 2
50%
50%
day service, but the
Percent of
10
10 40%
40%
Percent
30%
55
30%
20%
20%
number of customers in
00
10%
10%
0%
0%
these areas is very small.
11 22 33 44 55 66 77 88 99 10
10 11
11 12
12 13
13 14
14 15
15 16
16 17
17 18
18 19
19 20
20 21
21 22
22 23
23 24
24 25
25 26
26 27
27 28
28 29
29 30
30
Hours
Hours from
from DC
DC to
to Customer
Customer
Drivers travel 500 miles per day, based on a 10 hour shift at 50 mph.
80%
80%
business day. 60
60
50
70%
70%
50 60%
60%
40
40
Percent of
69%
69%
30 40%
40%
30
Percent
20
20
30%
30% 20%
20%
10
10 0.5%
0.5%
00 0%
0%
11Days
Days 22Days
Days 33Days
Days
Business
BusinessDays
Daysin
inTransit
Transit
Based on quoted duration of UPS Ground service.
34
Scenario: Best 1 DC
Because most of the population lives in the eastern half of the
country, a single facility would be located centrally.
35
Scenario: Best 1 DC
Distribution
activities are
roughly 16-20%
more efficient than
the baseline
scenario. This
location was
chosen to reduce
the total network
cost, but some
customers will
have slower
service.
36
Scenario: Best 1 DC
86%
of Customers
82%
82% 90%
90%
77
73%
73% 80%
80%
66
70%
70%
55 60%
60%
44 50%
50%
Percent of
31%
31%
33 40%
40%
Percent
30%
30%
22
20%
20%
11 10%
10%
00 0%
0%
11 33 55 77 99 11
11 13
13 15
15 17
17 19
19 21
21 23
23 25
25 27
27 29
29 31
31 33
33 35
35 37
37 39
39 41
41 43
43 45
45 47
47 49
49
Hours
Hours from
from DC
DC to
to Customer
Customer
Drivers travel 500 miles per day, based on a 10 hour shift at 50 mph.
50 100% 100%
of Customers
40
40 78% 80%
80%
behavior as the LTL road 78%
30
30 58%
58% 60%
60%
network. 47%
Percent of
47%
20
20 40%
40%
Percent
10
10 20%
20% 22%
22% 20%
20%
12%
12% 12%
12%
00 0%
0%
11Days
Days 22Days
Days 33Days
Days 44Days
Days
Business
BusinessDays
Daysin
inTransit
Transit
Based on quoted duration of UPS Ground service.
37
Scenario: Best 2 DCs
By adding a second DC, the network is able to serve both coasts
with one day service, and reach most of the country within 3 days.
38
Scenario: Best 2 DCs
Distribution
activities are
more efficient
than with a single
DC. Based on
customer
percentages, the
eastern facility is
much larger than
the second center.
39
Scenario: Best 2 DCs
Virtually all of the country can be reached in 3 days from the two
locations in this scenario.
LTL
LTL Service
Service Levels
Levels
Within
Within One
One Day
Day Within
Within Two
Two Days
Days Within
Within Three
Three Days
Days 100%
Although there is a small
100%
14
14 100%
100% area of southern Texas
Customers
83%
of Customers
83% 90%
12 90%
12
10
80%
80%
70%
that receives 4 day
10 70%
88 49%
49%
60%
60% service, the population
50%
50%
there is minimal.
Percent of
66 40%
40%
Percent
44 30%
30%
20%
20%
22
10%
10%
00 0%
0%
11 22 33 44 55 66 77 88 99 10
10 11
11 12
12 13
13 14
14 15
15 16
16 17
17 18
18 19
19 20
20 21
21 22
22 23
23 24
24 25
25 26
26 27
27 28
28 29
29 30
30
Hours
Hours from
from DC
DC to
to Customer
Customer
Drivers travel 500 miles per day, based on a 10 hour shift at 50 mph.
60 100% 100%
of Customers
50 80%
80%
within 3 business days. 40
40 67%
67%
60%
60%
30
30 56%
Percent of
56%
40%
40%
20
Percent
20
25%
25% 20%
20%
10
10
11% 11%
11% 11% 8%
8%
00 0%
0%
11Days
Days 22Days
Days 33Days
Days 44Days
Days
Business
BusinessDays
Daysin
inTransit
Transit
Based on quoted duration of UPS Ground service.
40
Scenario: Central NJ + 1 DC
Adding a second DC to the current network has very similar
results compared with the “Best 2 DC” scenario.
41
Scenario: Central NJ + 1 DC
The existing
site is not the
optimal
location for a
DC, but the
efficiency of
the network is
not reduced
significantly.
Relocating
the original
DC should be
done only if
other needs
arise.
42
Scenario: Central NJ + 1 DC
Customers
of Customers
88
90%
90%
73%
73% 80%
77 80%
70%
70%
66
60%
60%
55
42%
42% 50%
50%
Percent of
44
40%
40%
Percent
33
30%
30%
22 20%
20%
11 10%
10%
00 0%
0%
11 22 33 44 55 66 77 88 99 10
10 11
11 12
12 13
13 14
14 15
15 16
16 17
17 18
18 19
19 20
20 21
21 22
22 23
23 24
24 25
25 26
26 27
27 28
28 29
29 30
30 31
31 32
32 33
33 34
34 35
35 36
36 37
37 38
38 39
39 40
40
Hours
Hours from
from DC
DC to
to Customer
Customer
Drivers travel 500 miles per day, based on a 10 hour shift at 50 mph.
80%
80%
scenario with the Best 2 30
30
25
25 60%
60%
DC network. 20
20 49%
49% 37%
Percent of
37%
15 40%
40%
15 26%
Percent
26% 23%
10
10 27%
27% 23%
13% 20%
20%
55 13%
0.2%
0.2%
00 0%
0%
11Days
Days 22Days
Days 33Days
Days 44Days
Days 55Days
Days
Business
BusinessDays
Daysin
inTransit
Transit
Based on quoted duration of UPS Ground service.
43
Scenario: Best 3 DCs
44
Scenario: Best 3 DCs
This may be
a good long
term plan for
growing
PDQ’s
distribution
network. A
more
detailed
second study
could
identify the
expected
costs of this
scenario.
45
Scenario: Best 3 DCs
99 90%
90%
88
77 65%
65%
80%
80%
70%
Miami, and Fort
70%
66 60%
60% Lauderdale would not
55 50%
50%
receive at least 2 day
Percent of
44 40%
40%
Percent
33 30%
22
30%
20%
20%
service.
11 10%
10%
00 0%
0%
11 22 33 44 55 66 77 88 99 10
10 11
11 12
12 13
13 14
14 15
15 16
16 17
17 18
18 19
19 20
20 21
21 22
22 23
23 24
24 25
25 26
26 27
27 28
28 29
29 30
30
Hours
Hours from
from DC
DC to
to Customer
Customer
Drivers travel 500 miles per day, based on a 10 hour shift at 50 mph.
60 100% 100%
of Customers
50 80%
80%
business days. 40
40
60%
60%
30
30 55%
Percent of
55% 40%
40%
20
Percent
20 30%
30%
29%
29% 20%
20%
10
10 15%
15%
00 0%
0%
11Days
Days 22Days
Days 33Days
Days
Business
BusinessDays
Daysin
inTransit
Transit
Based on quoted duration of UPS Ground service.
46
Scenario: Central NJ + 2 DCs
This scenario is almost identical to the “Best 3 DC” scenario since the existing DC is
within 50 miles of the optimal location.
47
Scenario: Central NJ + 2 DCs
The
performance of
this scenario is
statistically
identical to the
“Best 3 DC”
solution.
48
Scenario: Central NJ + 2 DCs
LTL
LTL Service
Service Levels
Levels
Within
Within One
One Day
Day Within
Within Two
Two Days
Days Within
Within Three
Three Days
Days 100%
The 2 day service level is
93%
93% 100%
12
12 100%
100% only 1% less than the
Customers
of Customers
90%
90%
10
10
66%
66%
80%
80%
70%
previous scenario.
88 70%
60%
60%
66 50%
50%
Percent of
40%
40%
Percent
44 30%
30%
20%
20%
22
10%
10%
00 0%
0%
11 22 33 44 55 66 77 88 99 10
10 11
11 12
12 13
13 14
14 15
15 16
16 17
17 18
18 19
19 20
20 21
21 22
22 23
23 24
24 25
25 26
26 27
27 28
28 29
29 30
30
Hours
Hours from
from DC
DC to
to Customer
Customer
Drivers travel 500 miles per day, based on a 10 hour shift at 50 mph.
Parcel
Parcel Service
Service Levels
Levels
100%
Customers
60 100% 100%
of Customers
60 100%
89%
89%
50
50 80%
80%
40
40
60%
60%
30
30 57%
Percent of
57%
40%
40%
20 32%
Percent
20 32%
32%
32%
20%
20%
10
10
10%
10%
00 0%
0%
11Days
Days 22Days
Days 33Days
Days
Business
BusinessDays
Daysin
inTransit
Transit
Based on quoted duration of UPS Ground service.
49
Summary and Recommendation
50
Scenario Summary - LTL
This chart shows the performance of the LTL distribution network
under each scenario in the study.
51
Scenario Summary - Parcel
52
Recommendations
53
Recommendations
Appendix
54
Scenario: Central NJ & Reno
Instead of placing a second DC in California, PDQ could locate
in Reno, NV to share space with its sister company.
55
Scenario: Central NJ & Reno
This network is
less efficient than
other scenarios
with 2 distribution
centers. However,
it is still a
significant
improvement over
the baseline
network.
56
Scenario: Central NJ & Las Vegas
Based on distribution alone, Las Vegas is not the best city for a
second DC. However, other factors may outweigh transportation.
57
Scenario: Central NJ & Las Vegas
PDQ’s facility
costs may be
less expensive
in Las Vegas
than in the Los
Angeles area.
Residents of
California
would not have
to pay sale tax,
possibly
providin an
increase in
sales.
58
Scenario: Central NJ & Las Vegas
Service levels in this scenario are similar to other options.
59
BPIA Data: Top 50 Metro Areas
Peach State used the top 50 metro areas to design the U.S. network.
60
BPIA Data: Top 50 Metro Areas
Peach State used the top 50 metro areas to design the U.S. network.
61