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Optimize distribution center

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Present topic about how to optimize distribution center as Semester Research Project

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Optimize distribution center

  1. 1. Optimize Target’s Distribution Center Gyeoul Jung Find optimal location using python JungWinter
  2. 2. Visualize stores, RDCs position Calculate transport ation cost Analysis current status Analysis monthly cargo of store Realign RDC using gravity method RDC: Regional Distribution Center Flow
  3. 3. Environment Data DC network map.pdf 2010 STORE LIST 110309.xls Tool Python 3.5 Jupyter notebook Address to GPS coordinate Library Pandas Numpy Matplotlib Scikit-learn
  4. 4. Analysis Extract required columns from STORE LIST and import to jupyter ‘stores’ is DataFrame object of 1752x23 matrix
  5. 5. Analysis Visualize to scatter plot using X, Y columns
  6. 6. Analysis Check noise data
  7. 7. Analysis Check noise data Alaska & Hawaii
  8. 8. Analysis Re-visualize except Alaska and Hawaii stores
  9. 9. Analysis Analysis monthly cargo of store – First store
  10. 10. Analysis Visualize monthly cargo
  11. 11. Analysis Normalize monthly cargo
  12. 12. Analysis After Normalize New stores
  13. 13. Analysis Check validation using RDC’s in/outbound
  14. 14. Analysis Verification
  15. 15. Analysis Sort by RDC
  16. 16. Analysis Visualize first RDC - 551
  17. 17. Analysis Visualize all RDCs
  18. 18. Analysis Weighting according to cargo
  19. 19. Analysis Convert MILES between RDCs and stores to X, Y position
  20. 20. Analysis Mapping between RDC – Store To give different colors according to RDC
  21. 21. Analysis Convert address to X, Y position Longitude is X Latitude is Y
  22. 22. Analysis Set position of RDCs
  23. 23. Analysis Visualize RDCs with stores Store RDC
  24. 24. Analysis – Current Status
  25. 25. Analysis Find optimal location of RDCs
  26. 26. Analysis Realign 551 RDC using gravity method
  27. 27. Analysis Check the new 551 RDC’s position
  28. 28. Analysis Apply to all RDCs
  29. 29. Analysis Apply to all RDCs
  30. 30. Analysis Before comparing original and new cost based on location Required calculating distances between new location(X, y) and original stores
  31. 31. Analysis Mapping stores’ X, Y with MILES
  32. 32. Analysis Mapping stores’ X, Y with MILES
  33. 33. Analysis Mapping stores’ X, Y with MILES Different of X, Y between first Store with 551 RDC = 15 miles
  34. 34. Analysis Mapping stores’ X, Y with MILES X-Y distance To miles X-Y distance To miles
  35. 35. Analysis Mapping stores’ X, Y with MILES Obtaining the conversion formula gps distance and mile
  36. 36. Analysis Mapping stores’ X, Y with MILES Correlation coefficient R2 = 0.98
  37. 37. Analysis Mapping stores’ X, Y with MILES - 551 RDC Regression using machine learning
  38. 38. Analysis Mapping stores’ X, Y with MILES - all Get Mile = W * gps_diff + b function
  39. 39. Analysis Calculate cost
  40. 40. Analysis Optimal Cost
  41. 41. Result Comparing Save the 32% cost
  42. 42. Limitation of this study Consider the cost of the RDC migration Fix RDC-Store mapping Consider second option

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