One of the key strategic decisions to make as an enterprise is the optimization of the current logistics network. The main parameters to be considered are the location and amount of storage facilities, as well as cost, the availability and proper function of existing infrastructure and targeted market expansion milestones. The scope of this paper deals with a construction Company in the state of Nuevo León, Mexico. Nearshoring has been one of the main driving factors of increased population growth in the region. Urban expansion is becoming increasingly complex and decentralized, complicating the flow of materials in material distribution networks. Each allotment is presently developed with a warehouse, which in turn requires an investment in infrastructure, overhead, security and management. This paper aims to establish an optimized supply network through consolidated storage facilities without compromising the reliability of the existing routes. The chosen modelling method is optimization through mixed-integer programming. The main object of study in this paper is the comparison between the existing cost structure and the projected costs that would result from consolidating storage facilities and transportation. The results of the analysis are presented, having executed a successful application of the model, and display a 20.9% decrease in cost associated to operating the logistics in a ten-year forecast for a construction Company.
SDG 11 Sustainable Cities and Communities