Optimizing the number, location, and capacity of facilities in the supply chain network
SC Network Designer addresses a critical challenge in modern supply chain management: network design. This implementation combines rigorous academic methodology with production-ready Python code, suitable for both research and enterprise deployment.
Built on the foundational work of Professor David Simchi-Levi, this tool provides supply chain professionals with an analytical framework that transforms raw operational data into actionable optimization decisions. Whether you're managing a single warehouse or a global multi-echelon network, this toolkit scales to your complexity.
The solution follows industry best practices from APICS/ASCM, CSCMP, and ISM frameworks, implemented with clean, extensible Python code that integrates with existing ERP, WMS, and TMS systems.
Key capabilities:
- Facility location optimization with fixed and variable costs
- Transportation cost modeling across lanes and modes
- Demand allocation to optimal fulfillment nodes
- Scenario analysis for network configuration changes
- Greenfield and brownfield design support
flowchart LR
A[📥 Input\nData] --> B[⚙️ Processing &\nAnalysis]
B --> C[🔢 Optimization\nEngine]
C --> D[📊 Results &\nMetrics]
D --> E[📋 Recommendations\n& Actions]
style C fill:#fff9c4
style E fill:#c8e6c9
Supply chain network design is a persistent operational challenge that impacts cost, service, and working capital across the enterprise. Organizations that fail to optimize network design typically see:
| Impact Area | Without Optimization | With Optimization | Improvement |
|---|---|---|---|
| Cost | Baseline | 15-30% reduction | Significant |
| Service Level | 85-90% | 95-99% | +5-14 pts |
| Working Capital | Over-invested | Right-sized | 20-40% freed |
| Decision Speed | Days/weeks | Minutes/hours | 10-50x faster |
"The goal is not to optimize individual functions, but to optimize the entire supply chain system — which often means sub-optimizing individual nodes for the benefit of the whole."
This implementation follows a structured analytical approach:
- Data Ingestion & Validation — Load operational data, validate completeness, handle missing values and outliers
- Exploratory Analysis — Statistical profiling, distribution analysis, correlation identification
- Model Construction — Build the optimization/analytical model with configurable parameters and constraints
- Solution Computation — Execute the algorithm with convergence checking and solution quality metrics
- Results & Recommendations — Generate actionable outputs with sensitivity analysis and implementation guidance
| Requirement | Version |
|---|---|
| Python | 3.8+ |
| pip | Latest |
git clone https://github.com/virbahu/sc-network-designer.git
cd sc-network-designer
pip install -r requirements.txt
python sc_network_designer.py# Quick start example
from sc_network_designer import *
# Run with default parameters
result = main()
print(result)
# Customize parameters
# See docstrings in sc_network_designer.py for full parameter referencenumpy
scipy
pandas
matplotlib
| Based on | Professor David Simchi-Levi, MIT |
| Key Reference | Simchi-Levi (2010) Operations Rules. MIT Press |
| Domain | Network Design |
Virbahu Jain — Founder & CEO, Quantisage
Building the AI Operating System for Scope 3 emissions management and supply chain decarbonization.
| 🎓 Education | MBA, Kellogg School of Management, Northwestern University |
| 🏭 Experience | 20+ years across manufacturing, life sciences, energy & public sector |
| 🌍 Scope | Supply chain operations on five continents |
| 📝 Research | Peer-reviewed publications on AI in sustainable supply chains |
MIT License — see LICENSE for details.
Part of the Quantisage Open Source Initiative | AI × Supply Chain × Climate