Distribution Network Design and Facility Location
Module 02 · Week 37 · Network design
Distribution Network Design and Facility Location
Distribution network structures, inventory positioning, facility location, and demand allocation under cost and service requirements.
Decision levelStrategic network configuration
Core modelWarehouse location and demand allocation
Which warehouse locations and demand assignments create the strongest service–cost position?
Warehouse performance starts before the building exists. This module places facility decisions inside the distribution network and makes explicit how the number, location, and role of warehouses affect transport, inventory, service, capacity, and exposure to risk.
By the end of this module, you can
- distinguish single- and multi-warehouse network structures;
- explain the main service, transport, inventory, and risk trade-offs;
- formulate a quantitative warehouse-location decision;
- interpret allocation variables and model assumptions; and
- relate facility location to decisions at other planning levels.
Slides
Supporting material
Use the facility-location optimization tutorial for model formulation and Turkstra (2025) as an applied distribution-network design case.