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# 📦 Facility Location Optimization with Python & Gurobi
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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.
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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.
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The supply chain operates in two stages:
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1. **Inbound logistics**: shipping root beer barrels from plant(s) to DCs.
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2. **Outbound logistics**: local couriers deliver barrels from DCs to RDCs.
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2. **Outbound logistics**: Local couriers deliver barrels from DCs to RDCs.
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### ⚠️ Challenges Faced
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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.
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NERD management has raised concerns such as:
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- Are there too many DCs currently in operation?
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- 🏭 Should the Bellows Falls plant be used to support distribution?
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- 📦 Are service levels and capacities appropriate under current and future demand?
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- 💸 Can the overall network cost be reduced through better design?
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- Are there too many DCs currently in operation?
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- Should the Bellows Falls plant be used to support distribution?
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- Are service levels and capacities appropriate under current and future demand?
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- Can the overall network cost be reduced through better design?
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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.
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### 💡 Solution Approach in This Project
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## 🚀 Tools Used
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- **Python** (data handling & model setup)
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- **Gurobi** (optimization solver)
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- **Pandas, NumPy** (data processing)
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- **Jupyter Notebooks** (visualization and testing)
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- **Gurobi** (optimization solver). This project used a free academic license from [Gurobi Optimizer](https://www.gurobi.com/)
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## 📎 License & Credits
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## 🧮 Mathematical Model
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This problem is modeled as a Mixed Integer Linear Program (MILP) to determine optimal facility locations, flows, and total cost minimization.
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- [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/)
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- This project is for educational and personal portfolio use only.
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- This project used a free academic license from [Gurobi Optimizer](https://www.gurobi.com/)
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**Sets**
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P: Set of plants
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I: Set of candidate distribution centers (DCs)
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J: Set of regional demand centers (RDCs)
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Parameters
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𝐷
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𝑗
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D
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j
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: Weekly demand at RDC j ∈ J
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C_i: Capacity of DC i ∈ I (barrels/week)
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f_i: Fixed weekly cost of opening DC i
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c_ij: Cost per barrel from DC i to RDC j (handling + outbound transport)
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v_pi: Cost per barrel from plant p ∈ P to DC i (production + inbound transport)

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