This project involved developing an optimization model to enhance the logistics network for Lavazza, a leading global coffee producer. The objective was to identify cost-saving opportunities by re-evaluating the network structure and considering the introduction of a satellite warehouse. The model analyzed various scenarios to determine the optimal warehouse configuration, aiming to reduce transportation costs by over 15%.
The analysis focused on:
- Assessing Lavazza’s existing logistics network and identifying inefficiencies.
- Utilizing optimization techniques to evaluate the impact of adding a satellite warehouse.
- Providing actionable insights to improve Lavazza’s operational efficiency and customer satisfaction.
- Microsoft Excel: Used for building the optimization model, performing scenario analysis, and visualizing results.
- PowerPoint: Created a business-oriented presentation to summarize findings, methodology, and recommendations.
Data/: Contains logistics data utilized for the optimization model and cost analysis.Output/: Includes the final report(Lavazza Case.pdf) and presentation file.
- Introducing a satellite warehouse could reduce Lavazza's logistics costs by approximately 15.36%.
- The optimization model identified Warehouse 4 as the most cost-effective location for the satellite warehouse, resulting in minimized total logistics costs.
- The analysis revealed that switching from less-than-truckload (LTL) to full-truckload (FTL) in specific routes could significantly reduce overall expenses.
- Clone this repository.
- Review the logistics data and optimization model details in
Data/. - Open and review the final presentation in
Output/Lavazza Case.pdffor detailed analysis and business recommendations. - Examine the Excel model (
Final_Output_Excel.xlsx) to understand the scenario analysis and cost-saving calculations.
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