/facility-location-optimization-model

A collaborative AI-powered data science project to solve facility-location optimization problem (ongoing)

MIT LicenseMIT

Facility location

A collaborative AI-powered data science project to solve facility-location optimization problem (ongoing). Please see our Medium blog for more details.

Situation

We have five facilities to serve customers. We have two business problem to solve.

  1. We are facing budget-cut. Which facility should be closed?
  2. Where should we build an additional facility to minimize travel time (when we have extra budget)?

facility location initial image2 Figure 1. Geolocation of existing facilities & customer demands

Action

Develop optimization model using mathematical programming from #OperationsResearch.

Result

21% improvement of customer satisfaction add final network figure