LOCATION CASE STUDIESDr. Ron Lembke

Case Study:Importing from China to E. Coast

Customer Location

New Orleans $3,20036 days

NY / NJ $3,60036 days

Wilmington DE $3,95036 days (door)

Norfolk $3,60034 days

Charleston $3,60035 days

China to U.S. Container Rates

Atlanta$3,20037 days (door)

Roanoke

Norfolk

Philadelphia

Baltimore

Allentown

Harrisburg

750

850

850

750

750

825

Elizabeth, NJ

350

656375

950

575 305

1125

305

780

375

305

428

888

725

265

343 295

950

Wilmington

Drayage Rates

China to Long Beach

Cincinnati $2925, 21d

Columbus $3000, 21days

Atlanta $3300, 23d

Memphis $2900, 18.5d

Murray $3350, 22d

Nashville$3300, 22d

Louisville $3050, 20d

Landbridge Data

Distribution Center Location

Minimize demand-weighted distance: distance to each customer times the volume of shipments to the customer

How many to build? Where to build?

Case Study: Retailer

Location of a 5th returns processing facility Addresses of 2125 Continental U.S. stores Location of 4 Return Goods Processing

Centers List of all return shipments from each

store, including pounds and # pallets Calculated actual highway distances from

every store to its DC

Local Streets

Transportation Cost Approx.

Current Pallets: 205,254 Current Pallet Miles: 77.9m Cost / pallet-mile 11.68 cents Pallet-Mile = 1 pallet traveling 1 mile Minimize average distance traveled

Current RCs

Dallas Realignment

Close 1 Existing RC

Summary

Transportation costs are a huge factorStreet-level approximation of transportation

distances unnecessary“Straight Line” distances are usually fine“Great Circle” distances take the curvature of

the Earth into account Both inbound and outbound costs need to

be taken into account