May 13, 2020 at 12:00PM - May 13, 2020 at 1:00PM
MIT CTL hosts a Partner Virtual Series exclusively for Supply Chain Exchange members to share their experiences, responses, and issues related to the coronavirus outbreak. Last-mile distribution typically constitutes the most expensive part of any global supply chain, and it is becoming increasingly complex due to the ongoing boom in e-commerce, the associated rise in customer expectations, and the increasing levels of urbanization. Appropriately designing the underlying distribution networks, including facility location, inventory allocation, and fleet composition decisions is paramount for the efficient operation of both traditional and highly responsive last-mile distribution services. Our work highlights the importance of including demand uncertainty in the design process. Accounting for uncertainty leads to distribution networks that incorporate redundancy and flexibility in the strategic design. This results in an increase in expected cost performance and a decrease in downside risk. If you are not a Supply Chain Exchange member, learn how to become one here.