Setting up a distribution network

Optiveat – Nimzo

The NIMZO program allows you to minimize your structural and transport costs by calculating the optimal allocation between your delivery locations and your warehouses, as well as those from your warehouses to your suppliers.

For whom?

  • Transport companies
  • Distribution networks (supermarkets, specialized stores, …)

Strategic investments

Infrastructure costs (rent, maintenance of premises, etc.) and delivery costs (transport plan, last kilometers, etc.) often represent a large part of the budget for a distributor or transporter. This is why the company must take great care in its « long-term » choices, as they are strategic for its development.

In order to limit its expenses or to absorb a larger volume, the company may have to study different scenarios:

  • Reduction in the number of warehouses
  • Rental of an additional warehouse
  • Move

Our NIMZO program is designed to help you make these choices.

Benefit of the program: a decision support system

It helps you to check the profitability of each of the scenarios studied and gives you the optimal allocation plan for these (delivery location – warehouse pairs). You can perform complex flow analyses: several products, several suppliers, several warehouses, several customers. Our program allows you to manage several thousand constraints.

How does it work?

The OPTIVEAT-NIMZO program calculates the optimal (i.e. minimizing the total cost) allocations:

  • from all delivery locations to warehouses, taking into account the delivery capacities of the latter
  • and/or from warehouses to suppliers, taking into account the suppliers’ production capacities

Here is an example of a problem that can be solved with this program:

Initial situation: a catchment area is served by 5 delivery agencies.

As the maximum capacity of the 5 agencies has been reached, we want to open a new one to serve our customers. We have a choice of 3 locations.

After running the program we now know the location of the new agency which minimizes the overall costs with the new division below.

The OPTIVEAT-NIMZO program also allows density maps to be displayed, which makes it possible to understand visually why one location was chosen over another. In the map below, we have from lightest to darkest increasing delivery densities.

Finally, here is an illustration of the mapping of a « supplier to warehouse » flow. The black pins represent the six warehouses while the purple ones represent the four suppliers. Each line color corresponds to a product: there are three in our example (red, light blue, dark blue).

This modeling allows you to see at a glance who is delivering whom.

Required configuration:

-Microsoft Windows

-Microsoft Visual C++ 2005 and later

-Microsoft Excel 2007 and later

Our other products:

Alekhine software – Shortage management

Flohr software – Production planning

Benoni software – Queue management

Najdorf sotware – Management of truck flow during loading and unloading

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