Distribution Center Location Analysis For Nordic Countries By Using Network Optimization Tools

Abstract

Many supply chain and logistics related location decisions are driven by demand. This paper analyses population densities in Sweden, Finland, Norway and partly Denmark and analyses how a minimum impedance approach would set up the distribution center (DC) locations. For each scenario, travel time maps are generated. Firstly, each country is analyzed separately and 1...5 DC cases are analyzed. Then a merged Nordic area is introduced and a similar approach is used to set up 1…6 DCs. Finally, a sensitivity analysis is conducted to study how the large population of Umeå or Vaasa should be increased in order to make the top five in the Nordic level. The results show distribution centers could be formed in the case of population driven demand products. This also gives insight into how the results can vary when changing perspective from national analysis to Nordic level.