Facility Location Case study Home

Learning project on public data.

Is Dallas the right place to serve these customers, and would more sites pay?

I mapped 245 ChemCo customers from an MIT case and solved a p-median model for one to four sites, weighted by gallons delivered.

CustomersWith latitude and longitude2451,520,461 gallons in 2004
Dallas todayDelivery cost a yearUS$690K106.1 mi average
Houston directDelivery cost a yearUS$1.87M287.9 mi average
Best 2 sitesDelivery cost a yearUS$475KDallas and Amarillo

What I built

What the numbers show

The best single site lands in Dallas, so the current warehouse is well placed. Shipping direct from Houston would cost US$1.18M more a year in delivery. A second site saves US$215K a year, which is the most it could cost to run.