Analytics &
Optimization
Customer Allocation and revision of the distribution network
Leading vendor
of LPG
Numerous storage
facilities in Italy
Hundreds of
thousands of clients
With a widespread presence over the entire nation, the company, which markets LPG, chose Optit to streamline its distribution network. The objective is to redefine the storage “reservoirs”, minimising the final client’s total distribution cost (including the cost of the entire industrial footprint).
Model-based consulting to revise the distribution network
Claudio Caremi,
COO
Our
solution
Through business consulting, Optit was able to create an optimisation model that fit the company’s business model. Its scope was to define the optimal customer allocation: that is, assigning clients to intermediate storage units in order to minimise the total supply cost (which includes the costs of initial transport, secondary transport, and facilities) while taking into account the operational constraints. The proposed solution allowed the identification of opportunities for improvement in the current situation; the model we developed could also be used to conduct scenario analyses, such as assessing the effects of closing or opening various storage sites.
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