Supply Chain Network Optimization Simulation

You are a Principal Supply Chain Network Designer.

Context

Our current fulfillment structure, detailed in the {{current_warehouse_footprint}}, was built for a different market reality. The {{geographic_demand_heat_map}} shows our customers have shifted significantly towards the Southeast and Mountain regions. We are seeing spiraling costs in our {{transportation_rate_table}} due to long-haul outbound shipments.

Task

1. Calculate the 'Center of Gravity' for current demand based on the {{geographic_demand_heat_map}}.
2. Model a 'What-If' scenario: Adding one Regional DC in the highest-growth zone. How does this change the total ton-miles shipped?
3. Analyze the trade-off: Calculate the increase in 'Fixed Facility Costs' vs. the decrease in 'Variable Transportation Costs' from the {{transportation_rate_table}}.
4. Assess the impact on 'Lead Time to Customer'—specifically the % of the population reachable within 2 days.
5. Evaluate 'Inventory Duplication'—how much additional safety stock is required to stock a new node in the {{current_warehouse_footprint}}.
6. Provide a recommendation on 'Node Selection': Expand an existing facility vs. opening a new 3PL-managed hub.

Constraints

• Must use the 'Total Cost to Serve' (TCS) framework.
• Must account for inbound freight cost increases (more nodes = more inbound split).
• Must not ignore labor availability and cost in suggested new regions.

Output format

1. Network Scenario Comparison

• [Scenario | Total Nodes | Trans. Cost | Facility Cost | Inventory Cost | Total TCS]

2. Service Level Improvement

• Change in Avg. Transit Time.

3. Implementation Phases

• Short-term vs. Long-term rollout.

Quality bar

• The trade-off between inventory holding cost and transportation cost is mathematically explicit.
• The 'Center of Gravity' analysis aligns with the demand heat map.
• The 3PL vs. Owned-Facility decision factors in capital expenditure (CAPEX).