Center for Applied Research on Supply Chain Services at Fraunhofer IISAI for Better Location Decisions
The Center for Applied Research on Supply Chain Services at Fraunhofer IIS has conducted a network design study for a leading company in the chemical industry. In this study, they identified optimal warehouse locations across Europe in different scenarios with the explicit goal of minimizing transportation costs. The locations were calculated using an adaptive optimization approach that considered multiple constraints, including specific areas approved for warehouse locations, mandatory delivery processes, minimum loading quantities for trucks, and varying storage costs for different products. By utilizing AI-based forecasts of customer demands, various future scenarios were calculated and directly incorporated and evaluated in the optimal location selection process.
