Businesses that deliver physical goods must decide where to place their warehouses. It’s a difficult and computationally intensive problem, but you can find solutions using Solver’s evolutionary engine.
- [Instructor] Businesses that deliver physical goods…must decide where to place their warehouses.…It's a difficult and computationally intensive problem,…but you can find solutions using…Solver's evolutionary engine.…In this movie, I'll set up the problem…and give you a preview of the solution.…As I mentioned, delivery-based businesses…calculate their costs based on distance,…so the goal is to locate warehouses…to minimize the distance traveled.…In Excel, you can represent the locations of your warehouses…and your stores or delivery points on an xy scatter plot.…
Here's what one sample map would look like.…In this case, I have a set of 25 stores in blue,…and the warehouses, or depots, from which…deliveries are made are represented in orange.…You'll notice toward the bottom center that…there is an orange dot right on top of a blue dot.…What that tells you is that you either should co-locate…the facilities if you can, or if not, you should put…that warehouse as close to that position as you can.…
We'll follow a number of steps to create the solution.…
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- Finding target values using Goal Seek
- Finding a solution using Solver
- Tuning investment portfolios
- Organizing worksheets
- Creating objective and control formulas
- Experimenting with different constraints
- Optimizing resource placement
- Defining decision trees