How Many Depots? Total Cost Curve, Service Target and the Recommendation
This lesson is part of the course
In this lesson
You add transport, warehouse and inventory cost for 1–4 depots, find the cheapest network, find the cheapest one that meets the coverage target and chart the cost build-up.
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Lessons in this course
- The Demand Map: Coordinates, Volumes and the Weighted Centre of Gravity Locked
- Better Than the Centre of Gravity: Distances, Tonne-km and a Weiszfeld Step Locked
- Candidate Sites: Distance Matrix, Nearest Depot and the Volume Each Site Serves Locked
- Transport Cost: Outbound Deliveries, Inbound Trunking and Road Kilometres Locked
- Warehouse Cost: Fixed Cost per Depot, Handling per Tonne and Capacity Locked
- Service Coverage: Drive Times, the Delivery Promise and the Price of Better Service Locked
- The Inventory Effect: More Depots, More Safety Stock (the Square-Root Rule) Locked
- How Many Depots? Total Cost Curve, Service Target and the Recommendation Locked