Question: You are starting a network design study for a company
You are starting a network design study for a company that wants to reduce costs in its distribution network. Their financial year is the same as the calendar year. Last May, the company changed their packaging strategy and the gross unit weight of their products increased by 20%—that is, for the same number of units ordered, the total weight shipped went up by 20% due to increased weight of packaging material. The products were shipped in full truckloads that typically weighed out. The demand is fairly stable all year with no seasonality. What timeframe would you use to pull data for the baseline? If you used all 12 months, what would be the advantage? What would be the disadvantage? How will you model demand for the scenarios?
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