ASCD is a supply chain design tool, especially powerful where your business requires multi-stop shipments.  It optimizes simultaneously multi-stop route territory (outbound from warehouses) and upper echelon supply chain together.

 

 

Challenges

ASCD is a tool to design supply chain network optimizing several cost factors while respecting various constraints such as capacities.  A simple example, but challenging as shown in the picture above, is to trade off inbound costs, warehousing/inventory carrying costs at DC's and outbound costs where outbound involves multi-stop routes with delivery frequency requirements.  To have an implementable solution, it is essential to model multi-stop delivery cost accurately considering delivery frequency requirements.

 

The following questions can be answered by ASCD:

 

• How many facilities do I need and where?
• Where do I put new facilities and what should be their sizes?
• How do I rationalize combined supply chain networks?
• How robust is my supply chain under various assumptions?
• What's the impact of higher or lower customer service?
• Where should I package my products?
• Do I need one layer or two layer distribution?
• Which customers should be served by which DC?
• Which customers should be served by which route?
• Which suppliers should I work with?