Determination of intermediate sortation or warehousing facility location
Abstract:
The present application describes a method of utilizing a mathematical model to determine appropriate locations for redistribution or drop-off of items with last mile delivery services at a consolidation point representing an intermediate sortation or warehousing in a retail enterprise's supply chain downstream of retail locations. Items may be brought from a consolidation point, such as a warehouse downstream of retail locations, to such a redistribution location (herein referred to as a “Transload” point). A last-mile delivery carrier may pick up items from the Transload point and deliver them to customer delivery locations in the geographical area served by the Transload point. In examples, relocation of selected deliveries from the consolidation point to a Transload point reduces the per-mile cost for last mile deliveries. A model uses candidate locations to assess optimal locations for such a Transload facility, for example, based on delivery locations and associated costs.
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