Consider a consumer packaged goods company that sells their products to supermarkets. For the bigger supermarket retailers, they ship full truckloads from their warehouses directly to the retailer’s warehouses. For smaller ones, they will ship their product in full truckloads from their warehouse to local wholesalers who then ship to the stores. This firm is interested in the best locations for their warehouses to minimize the transportation cost. If they have built a cost matrix that has the cost per truckload from every potential warehouse to every one of their ship-to locations, why don’t they need to worry about the distance between the potential warehouses and the ship-to points?

  • CreatedOctober 29, 2015
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