Distribution Network Analysis
Melitta USA is a leading manufacturer and distributor of coffee and coffee filter products. NUTEC was retained to conduct a Network Analysis of their distribution system to evaluate annual transportation costs and identify economical traffic lanes and alternative potential locations for distributors.
The task was simulate and analyze the existing distribution network, in order to evaluate annual transportation costs. Also, analyzing the current customer volume to investigate potential alternatives.
Changes to the current distribution network, including the relocation, elimination, and addition of distribution locations were simulated and their associated transportation costs calculated and compared to find the most economical opportunities. Evaluating the alternatives that were suggested and currently under consideration, enabled the company to see that potential future results for each proposed change.
In addition, the inclusion of some new alternatives, for product distribution, showed the overall estimated costs for other potential scenarios.
The analysis proved that as a useful tool for identifying the most economical options to further investigate in developing and refining their distribution network in the USA.