Present topic about how to optimize distribution center as Semester Research Project

1. Optimize Target’s Distribution Center
Gyeoul Jung
Find optimal location using python
JungWinter

2. Visualize
stores,
RDCs
position
Calculate
transport
ation
cost
Analysis current status
Analysis
monthly
cargo of
store
Realign RDC using
gravity method
RDC: Regional
Distribution
Center
Flow

3. Environment
Data
DC network map.pdf
2010 STORE LIST 110309.xls
Tool
Python 3.5
Jupyter notebook
Address to GPS coordinate
Library
Pandas
Numpy
Matplotlib
Scikit-learn

4. Analysis
Extract required columns from STORE LIST and import to jupyter
‘stores’ is DataFrame object of 1752x23 matrix

5. Analysis
Visualize to scatter plot using X, Y columns

6. Analysis
Check noise data

7. Analysis
Check noise data
Alaska & Hawaii

8. Analysis
Re-visualize except Alaska and Hawaii stores

9. Analysis
Analysis monthly cargo of store – First store

10. Analysis
Visualize monthly cargo

11. Analysis
Normalize monthly cargo

12. Analysis
After Normalize
New stores

13. Analysis
Check validation using RDC’s in/outbound

14. Analysis
Verification

15. Analysis
Sort by RDC

16. Analysis
Visualize first RDC - 551

17. Analysis
Visualize all RDCs

18. Analysis
Weighting according to cargo

19. Analysis
Convert MILES between RDCs and stores to X, Y position

20. Analysis
Mapping between RDC – Store
To give different colors according to RDC

21. Analysis
Convert address to X, Y position
Longitude is X
Latitude is Y

22. Analysis
Set position of RDCs

23. Analysis
Visualize RDCs with stores
Store
RDC

24. Analysis – Current Status

25. Analysis
Find optimal location of RDCs

26. Analysis
Realign 551 RDC using gravity method

27. Analysis
Check the new 551 RDC’s position

28. Analysis
Apply to all RDCs

29. Analysis
Apply to all RDCs

30. Analysis
Before comparing original and new cost based on location
Required calculating distances between new location(X, y) and original stores

31. Analysis
Mapping stores’ X, Y with MILES

32. Analysis
Mapping stores’ X, Y with MILES

33. Analysis
Mapping stores’ X, Y with MILES
Different of X, Y between first Store with 551 RDC = 15 miles

34. Analysis
Mapping stores’ X, Y with MILES
X-Y distance
To miles
X-Y distance
To miles

35. Analysis
Mapping stores’ X, Y with MILES Obtaining the conversion formula
gps distance and mile

36. Analysis
Mapping stores’ X, Y with MILES
Correlation coefficient R2 = 0.98

37. Analysis
Mapping stores’ X, Y with MILES - 551 RDC
Regression using machine learning

38. Analysis
Mapping stores’ X, Y with MILES - all
Get Mile = W * gps_diff + b function

39. Analysis
Calculate cost

40. Analysis
Optimal Cost

41. Result
Comparing
Save the 32% cost

42. Limitation of this study
Consider the cost of the RDC migration
Fix RDC-Store mapping
Consider second option