Supply Chain Studio Pro integrates analytical optimization with discrete-event simulation to address strategic, tactical, and operational supply chain challenges across multi-echelon networks.
1. GFA determines unconstrained, ideal geographic Center of Gravity (CoG) facility locations.
2. NO solves Mixed-Integer Master Planning (MILP) subject to capacities, costs, and multi-echelon flow bounds.
3. SIM validates operational execution under stochastic demand, inventory control policies, lead time jitter, and risk disruptions.
2. Deep-Dive Methodological Reference (GFA, NO, SIM Engines)
2.1 Greenfield Analysis (GFA) Engine
Purpose & Managerial Use: Greenfield Analysis evaluates pure spatial geometry and demand-weight distributions. It answers the fundamental strategic question: "If we could build N new distribution centers anywhere in the world without existing facility constraints, where should they be located to minimize transportation distance?"
Mathematical Formulation: Solves the continuous location-allocation Weber problem using Weiszfeld iteration and K-Means spatial clustering:
min ∑ w_i · d((x, y), (lat_i, lng_i)) where w_i is demand weight and d is distance.
Variant 1: Fixed Number of DCs (N): Finds optimal centroids for a user-defined candidate count N = 1 &dots; 10. Use this when capital expenditure limits you to building a specific number of warehouses.
Variant 2: Fixed Maximum Service Distance (km/mi): Automatically computes the minimum number of DCs required so that no customer exceeds a maximum service radius R_max (e.g. 350 km). Use this to guarantee strict lead time SLAs (e.g. same-day or next-day delivery).
Distance Metrics: Offers spherical Great Circle (Haversine formula) and Manhattan / Road Network Factor (1.25x) to model realistic highway detours.
2.2 Network Optimization (NO) Engine
Purpose & Managerial Use: Network Optimization applies Mixed-Integer Linear Programming (MILP) to model complex multi-echelon trade-offs between fixed facility lease costs, variable handling, freight tariffs, and production limits. It answers: "Which facilities should be open, closed, or expanded to maximize net profit while fulfilling all customer orders?"
Objective Function: Maximize Net Profit across the planning horizon:
Net Profit = Revenue - (Fixed Facility Lease + Transportation Tariffs + Inbound Handling + Production Costs + Late Penalties)
Decision Variables: Binary open/close status y_j ∈ {0, 1} for candidate DCs, and continuous multi-echelon flow volumes x_ijk ≥ 0 from suppliers to DCs to customers.
Purpose & Managerial Use: Dynamic Simulation tests the operational reality of the supply chain day by day over time. While optimization models assume static averages, SIM tests stochastic variance—daily customer demand spikes, lead time delays, inventory stockouts, and unexpected risk disruptions.
Stochastic Demand & Lead Time Modeling: Daily demand is generated using Gaussian Normal distributions N(μ, σ) or Uniform distributions. Lead times incorporate transport speed and distance jitter.
Reproducibility via Random Seed (seed): Initializing the Pseudo-Random Number Generator (PRNG) with a specific seed (e.g. seed = 42) guarantees that identical daily random sequences are produced across different experiment runs for fair comparison.
Inventory Replenishment Policies Evaluated:
(s, S) Min-Max Policy: Trigger replenishment when stock position I ≤ s up to target maximum S.
(R, s, S) Periodic Policy: Every R days, review stock and reorder if I ≤ s up to S.
(s, q) Fixed Order Policy: Reorder a fixed batch q when stock hits s.
Disruption & Risk Resilience Injection: Simulates real-world crises (Complete Facility Shutdown, 75% Capacity Drop, 300% Lead Time Surge) to evaluate Time-To-Recover (TTR) and financial loss exposure.
Select Case Study 1: European Distribution Network from the top dropdown.
In Tab 2 (GFA), select Fixed Maximum Service Distance (350 km) and click Run Greenfield Analysis. Inspect recommended DC locations in Frankfurt, Prague, and Amsterdam.
In Tab 3 (NO), check Include GFA Candidate DCs and click Solve Optimization Model. Review optimal multi-echelon flow assignments and cost breakdown.
In Tab 4 (SIM), set start date (2026-01-01) and end date (2026-06-30), click Run Simulation, and watch live animated shipments transport orders across the Leaflet GIS map!