A Hybrid Greenfield–Simulation Framework for Distribution Network Design in a Two-Wheeler Automotive Supply Chain

Abstract

Increasing demand leads to stockouts at regional warehouses and inconsistent availability at dealer locations. These issues become even more pronounced in markets that are spread out geographically. This study introduces a hybrid two-stage distribution network design that combines Greenfield Analysis with simulation modelling to optimise the two-wheeler supply chain. In the first stage, Greenfield Analysis identifies the best locations for regional distribution centres across three scenarios, utilising two, three, and four centres constructed on features like transport distance, demand distribution, and service coverage. In the second stage, simulation assesses each design by considering demand variability, route limitations, and vehicle capacity, using metrics such as cost, service level, inventory availability, and emissions. The findings indicate that using two centres raises costs, while three centres enhance efficiency, and four centres strike a balance with lower costs, reduced emissions, and improved availability, providing valuable decision-making support for planners.