An evaluation of logistics network modelling tools available to South Australian companies

The benefits of using distribution network modelling systems in Australia are rather different from those places where such systems originated and are most frequently used - the USA and Europe. National distribution models for the majority of businesses will always have a limited number of options to explore. In practical terms, the question usually revolves around whether to centralise or decentralise, and attempts to balance three things: (1) service level, (2) transport costs and (3) inventory costs. A user with an understanding of logistics principles can often find an initial answer to such questions using relatively simple modelling tools or methods. This paper focuses on two important considerations that emerged during the study: (1) the search for software packages that are relevant to small to medium manufacturers (SMEs) and can solve the strategic transport network location problems often faced by these businesses, and (2) the need to develop an understanding of the theoretical aspects of strategic transport planning location problems. (a) For the covering entry of this conference, please see ITRD abstract no. E211825.