Philadelphia, PA · Capacity: 40K in / 40K out / 80K storage
Inbound Utilization~13.8% avg
Outbound Utilization~13.8% avg
Fixed Cost / Period$12,000
Serves: New York exclusively (lowest cost lane at $1.20/unit)
⚠ Low Utilization Flag: Both DCs are operating at ~14% of inbound/outbound capacity. The fixed operating cost of $108,000 over 4 periods is being spread across a small volume. This is expected for a POC dataset — real-world models with full product portfolios will increase utilization meaningfully.
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Period-by-Period Trends
Procurement Volume by Period (Units)
Demand Fulfilled by Customer (Units, All Periods)
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Recommendations
Rec 01 · Vendor Strategy
Formalize Dual-Vendor Strategy
The optimizer cleanly split the portfolio: Beta Manufacturing wins on Pumps and Valves due to lower unit cost ($390/$155 vs Alpha's $420/$160), while Alpha Supply wins on Steel Pipe due to superior transport economics from Chicago to both DCs. This natural split is worth formalizing into long-term contracts.
Beta → P001 + P002 | Alpha → P003
Rec 02 · Gamma Global
Keep Gamma as Risk Backup Only
Gamma was not selected in any period across any product. Their pricing is 5–15% higher than selected vendors and West Coast location adds $7–9.50/unit in transport to reach DCs. However, they represent meaningful backup capacity (3K–12K units per product) that could be activated if Alpha or Beta face supply disruptions.
Qualify Gamma as Tier-2 backup — no active spend required
Rec 03 · DC Network
DC East Is Highly Efficient for NYC
The DC East → NYC lane at $1.20/unit is the most efficient fulfillment lane in the network (vs $5.50 from DC Central). All NYC demand correctly flows through DC East. Consider whether additional East Coast customers could be added to improve DC East utilization above its current ~14%.
DC East breakeven utilization est. ~35–40% with broader customer base
Rec 04 · Next Steps
Run Scenario Analysis
Now that the baseline is established, three high-value scenarios to run: (1) Beta capacity constraint — what happens if Beta can only supply 3,000 pumps/period? (2) Price sensitivity — at what Alpha pipe price does Gamma become competitive? (3) Seattle DC — does adding a West Coast DC reduce total network cost given the 1,870-mile haul from Kansas City?
Suggest: Auto-Scenarios in Lyric for all three in one run