Spatial modeling

Network Optimization includes the capability to model space within sites, enabling you to determine site size based on dimensional requirements (floor area). You can define spaces to align with specific functions within the location, such as storage, shipping and offices. The space definitions include fixed and variable costs and CO2 consumption rates. They also capture inventory considerations and overall constraints, such as minimum and maximum expansion limits.

You can define and restrict the available space for products within sites in the network. This provides more accurate throughput and storage capacity for sites in the supply chain, ultimately leading to optimal results that are more consistently actionable. Additionally, this feature provides the ability to optimize floor space utilization within a facility by allowing the solver to decide the amount of space within each site that should be dedicated to various functions and storage types.

For example, assume a warehouse that has spaces for a number of different functions. You can define space records as "storage", "shipping" or "other" similar to as shown below:

Spatial modeling supports a number of features, including:

• Assess sites based on available space with associated costs for startup and operating expenses.

• Size locations based on dimensional requirements (area/floor space), considering minimum and maximum growth limitations.

• Allow for variable space usage based on the activity in the space, including minimum and maximum allowances based on throughput of specific products.

• Constrain sites and spaces by the total allowable space, aligning floor space requirements with site capacity.

• Expand sites and spaces while considering expansion costs and increased operating costs and CO2 consumption.

• Define storage areas with relative inventory capacity and space requirements.

• Define obsolete/unhealthy stock as a quantity or as a percentage of "healthy" stock at the site-product level.

In addition to the space and inventory features, general site cost and CO2 consumption features are available:

• Define startup costs and fixed CO2 consumption for sites at the period level.

• Define variable costs and CO2 consumption at the site level.

A set of input tables provides the means for defining the spaces per site and assigning products that can utilize the space. Additional columns in the existing sites tables enable you to constrain spaces at the site level, while columns in the inventory policies tables provide a way to define obsolete/unhealthy inventory. A set of output tables and additional columns in existing output tables provide thorough reporting including cost and CO2 data, space utilization and expansion, and inventory metrics.

Fixed operating cost and fixed CO2 rate for expansion

With spatial modeling, the fixed operating costs and fixed CO2 rates support only scalar (non-stepwise) values. Stepwise values for the Fixed Operating Space Expansion Cost and Fixed CO2 Expansion Rate columns in the Sites and Sites Multi-Period tables are not used.

Data calibration with spatial modeling

Working with spatial modeling

You define spaces for sites using these input tables:

• Site Storage Spaces - These spaces are used for storage within the site. Define the Cube-Floor Ratio to set the site floor space consumed by one unit of product volume stored. The Initial Period determines when the space can first be used. Use constraint columns to set the minimum required and maximum allowable floor space and expansion space, along with the cost associated with expansion. Use Percent Full to set the effective capacity of the space.

• Site Shipping Spaces - These spaces are used for dispatching and receiving product within the site. Define the Throughput-Space Ratio to set the site floor space consumed by one unit of product throughput. Use constraint columns to set the minimum required and maximum allowable floor space and expansion space, along with the cost associated with expansion. Use Percent Full to set the effective capacity of the space.

• Site Other Spaces - These spaces are used for other activities within the site, such as offices. The Initial Period determines when the space can first be used and the Fixed Space determines the floor space.

For the storage and shipping spaces, you then assign the products that can be stored in, dispatched from, or received at the spaces using these input tables:

• Storage Space Assignments - Define the product(s) that can be stored in the Site Storage Spaces, as well as the utilization of the space. Please note that at this time, groups are not supported for the Space column in the Storage Space Assignments table.

• Dispatch Space Assignments - Define the product(s) that can be dispatched from the Site Shipping Spaces, as well as the utilization of the space. Please note that at this time, groups are not supported for the Space column in the Dispatch Space Assignments table.

• Receiving Space Assignments - Define the product(s) that can be received at the Site Shipping Spaces, as well as the utilization of the space. Please note that at this time, groups are not supported for the Space column in the Receiving Space Assignments table.

At the Site level, you can define characteristics of:

• Floor space (Initial Floor Space)

• Expansion (Min Floor Expansion, Max Floor Expansion and Fixed Operating Space Expansion Cost)

• Overall variable cost (Site Variable Cost and Site Variable Cost Basis)

• CO2 (Fixed CO2, Fixed CO Expansion, Site Variable CO2 and Site Variable CO2 Basis)

In Inventory Policies, you can define the Unhealthy Turn Percent (additional inventory held beyond the turn-based inventory). You can also define Fixed Excess Stock and the percentage of this stock that can be moved.

The output tables that reflect the space-specific information are:

• Site Space Summary - Provides site-level metrics and costs for floor space, expansion, variable cost and variable CO2.

• Storage Space Summary - Provides metrics for storage spaces.

• Shipping Space Summary - Provides metrics for dispatch and receiving spaces.

• Other Space Summary - Provides metrics for other spaces.

• Storage Space Details - Provides details such as floor space, throughput and inventory metrics for storage spaces.

• Receiving Space Details - Provides the floor space and throughput metrics for receiving spaces.

• Dispatch Space Details - Provides the floor space and throughput metrics for dispatch spaces.

Additional summary information is provided in these output tables:

• Network Summary - Provides the Site Variable Cost and Space Expansion Cost for the overall network.

• Financial Summary - Provides the Site Variable Cost and Space Expansion Cost for the overall network.

• Organization Summary - Provides the Site Variable Cost and Space Expansion Cost for each organization.

• Network Site Summary - Provides the Site Variable Cost, Site Variable CO2 and Space Expansion Cost for the site.

• Network Product Summary - Provides the Site Variable Cost and Site Variable CO2 for the product.

• Network Inventory Summary - Provides the Excess Inventory.