You signed in with another tab or window. Reload to refresh your session.You signed out in another tab or window. Reload to refresh your session.You switched accounts on another tab or window. Reload to refresh your session.Dismiss alert
Copy file name to clipboardExpand all lines: README.md
+30-13Lines changed: 30 additions & 13 deletions
Display the source diff
Display the rich diff
Original file line number
Diff line number
Diff line change
@@ -1,6 +1,6 @@
1
1
# 📦 Facility Location Optimization with Python & Gurobi
2
2
3
-
This project is a hands-on implementation of the **Facility Location Problem (FLP)** using Python and the Gurobi optimization solver. The scenarios and data used are based on a case study from the [MITx MicroMasters program in Supply Chain Management](https://micromasters.mit.edu/scm/), module [Supply Chain Design](https://www.edx.org/learn/supply-chain-design/massachusetts-institute-of-technology-supply-chain-design), which I took in 2022.
3
+
This project is a hands-on implementation of the **Facility Location Problem (FLP)** using Python and the Gurobi optimization solver. The scenarios and data used are based on a case study from the [MITx MicroMasters program in Supply Chain Management](https://micromasters.mit.edu/scm/), module [Supply Chain Design](https://www.edx.org/learn/supply-chain-design/massachusetts-institute-of-technology-supply-chain-design), which I took in 2022. This project is for educational and personal portfolio use only.
4
4
5
5
---
6
6
@@ -28,19 +28,20 @@ NERD’s current supply chain includes:
28
28
29
29
The supply chain operates in two stages:
30
30
1.**Inbound logistics**: shipping root beer barrels from plant(s) to DCs.
31
-
2.**Outbound logistics**: local couriers deliver barrels from DCs to RDCs.
31
+
2.**Outbound logistics**: Local couriers deliver barrels from DCs to RDCs.
32
32
33
33
---
34
34
35
35
### ⚠️ Challenges Faced
36
36
Despite operational success at the Scranton plant, NERD's **New England distribution network is inefficient and fragmented**, with facilities added over time through mergers and acquisitions rather than design.
37
37
38
38
NERD management has raised concerns such as:
39
-
-❓ Are there too many DCs currently in operation?
40
-
-🏭 Should the Bellows Falls plant be used to support distribution?
41
-
-📦 Are service levels and capacities appropriate under current and future demand?
42
-
-💸 Can the overall network cost be reduced through better design?
39
+
- Are there too many DCs currently in operation?
40
+
- Should the Bellows Falls plant be used to support distribution?
41
+
- Are service levels and capacities appropriate under current and future demand?
42
+
- Can the overall network cost be reduced through better design?
43
43
44
+
Read in detail about the case study and relevant data at [The case study file](case_study_file.pdf). This file belongs to Caplice, C. (2016). *New England Root Beer Distributors (NERD4) Case Study*. MITx MicroMasters in Supply Chain Management.
44
45
---
45
46
46
47
### 💡 Solution Approach in This Project
@@ -65,14 +66,30 @@ To support decision-making, this project builds a **network design optimization
65
66
## 🚀 Tools Used
66
67
67
68
-**Python** (data handling & model setup)
68
-
-**Gurobi** (optimization solver)
69
-
-**Pandas, NumPy** (data processing)
70
-
-**Jupyter Notebooks** (visualization and testing)
69
+
-**Gurobi** (optimization solver). This project used a free academic license from [Gurobi Optimizer](https://www.gurobi.com/)
71
70
72
71
---
73
72
74
-
## 📎 License & Credits
73
+
## 🧮 Mathematical Model
74
+
This problem is modeled as a Mixed Integer Linear Program (MILP) to determine optimal facility locations, flows, and total cost minimization.
75
75
76
-
-[The case study file](case_study_file.pdf) belongs to Caplice, C. (2016). *New England Root Beer Distributors (NERD4) Case Study*. MITx MicroMasters in Supply Chain Management. [Link to program](https://micromasters.mit.edu/scm/)
77
-
- This project is for educational and personal portfolio use only.
78
-
- This project used a free academic license from [Gurobi Optimizer](https://www.gurobi.com/)
76
+
**Sets**
77
+
P: Set of plants
78
+
I: Set of candidate distribution centers (DCs)
79
+
J: Set of regional demand centers (RDCs)
80
+
81
+
Parameters
82
+
𝐷
83
+
𝑗
84
+
D
85
+
j
86
+
87
+
: Weekly demand at RDC j ∈ J
88
+
89
+
C_i: Capacity of DC i ∈ I (barrels/week)
90
+
91
+
f_i: Fixed weekly cost of opening DC i
92
+
93
+
c_ij: Cost per barrel from DC i to RDC j (handling + outbound transport)
94
+
95
+
v_pi: Cost per barrel from plant p ∈ P to DC i (production + inbound transport)
0 commit comments