Depot network design

Depot locations and store service areas were iterated together, then rebuilt as delivery routes and vehicle plans before cost, service and transition review.

Industry: Retail distribution
Decision family: Spatial planning
Evaluation scope: Routing-validated scenarios

Customer identity and identifying operational details are withheld.

The operating decision

A geographically close depot plan is not enough: every candidate must support balanced service areas, feasible deliveries and a practical transition.

Inputs: Store locations · Demand · Travel distance · Store operating conditions · Vehicle conditions
Decision: Depot count and locations · Store assignment per depot · Service-area boundaries · Transition sequence
Constraints: Minimum and maximum service-area size · Vehicle capacity · Delivery feasibility · Service conditions

How it is approached

Generate depot and service-area candidates
Update depot locations and assigned stores together using demand and travel distance.
Balance and rebuild the operation
Adjust zones outside the permitted size range, then construct delivery sequences and contracted-plus-extra vehicle plans for each candidate.
Compare cost, service and transition
Evaluate the resulting operating plans on a common monthly cost basis, review service conditions and identify a phased transition order.

Location, service zones and routes are evaluated together.

Depot and zone candidates

Depot locations and service areas are updated iteratively on store demand and travel distance together.

Nationwide demand density
Alternatives by depot count
Service areas updated together

OUTPUT · depots and their stores

Zone size adjustment

A range of stores per depot is applied; zones too small or too large are adjusted.

Overloaded zones split
Underloaded zones reinforced
Zone sizes re-checked

CHECK · min and max zone size

Delivery operation rebuilt

Delivery routes, vehicle capacity and store conditions are applied per candidate zone to build a feasible operating plan.

Delivery sequence built
Contracted + extra vehicles
Operating conditions applied

OUTPUT · routes and vehicle mix

Overall evaluation

Travel distance and vehicle cost are compared monthly; service conditions and transition feasibility are reviewed with them.

Monthly total cost compared
Service conditions checked
Phased transition order reviewed

DECISION · cost, service, transition

Original project workflow for depot candidates, zone-size adjustment, feasible delivery plans and network evaluation.

Routing-validated scenarios

Validation & scope

The source describes network scenarios checked through route and vehicle feasibility, with a phased transition plan. This is planning and operational-validation evidence; it does not establish that the proposed network was implemented or that the scenario cost difference was realized.