Advanced Spatial Analysis

1. Advanced Spatial Analysis October 7, 2002 Dr. Charles Noon Department of Management The University of Tennessee

2. Agenda • Beyond mapping, Geographic Information Systems (GIS) with examples • Buffer and Overlay • Transportation Analysis • Advanced Descriptive Modeling example • Advanced Prescriptive Modeling example

3. Competitor A Sales Dollars (000s) by State

4. Geographic Information Systems (GIS): A tool for spatial analysis • GIS: a computer platform which allows chain-wide data to be easily integrated for display and analysis. • GIS is not map making software • Data stored and handled in Layers • Data is attached to each Feature • Display can be a function of the data • Query and Analysis within or between layers

5. Buffer and Overlay • Buffer around points, lines or polygons • Overlay can, for example, merge maps together, clip one map based on another map, find the intersection of two maps, or find the union of two maps that combine both spatial and attribute data.

8. 500-mile buffer zones around the DCs.

9. Clip customer sites that fall within 500-mile buffer zones around the DCs.

11. Select all counties that intersect with the 500-mile buffer zones around the DCs.

13. Transportation Analysis • With the addition of a network layer, a number of analyses can be performed, such as • Shortest Path • Service areas • Vehicle Routing

24. Thickness is rate

26. Transportation Analysis • With the addition of a network layer, a number of analyses can be performed, such as • Shortest Path • Service areas • Vehicle Routing

34. An Example of Overlay: Recommended Market Niche Pharmaceuticals • Large growing industry with much of the consumption in the Southeast • Majority of current flights are into Northeast • Most DCs within 2 day delivery • US Xpress and Averitt Express both currently carry pharmaceuticals

35. Chattanooga Catchment Area Two Day Delivery 70.6% One Day Delivery 23.7%

36. Charlotte Catchment Area Two Day Delivery 64.5% One Day Delivery 24.8%

37. Population served by Charlotte Population served by Chattanooga

38. 2-Day Delivery Coverage Population served by Charlotte Population served by Chattanooga Population served by both

39. Results of Analysis: • Population within two-day catchment • Chattanooga – 70.6% • Charlotte – 64.5% • Approximately $8 billion in additional pharmaceutical potential in Chattanooga catchment

40. Transportation Analysis • With the addition of a network layer, a number of analyses can be performed, such as • Shortest Path • Service areas • Vehicle Routing

43. An Example • A distributor to fast-food restaurants with 12 DC’s serving 3922 restaurants with 80 vehicles. • Currently, DC’s serve from 209 to 644 restaurants. • TransCad was first used to determine optimal weekly delivery routes under the current restaurant-to-DC assignments.

44. CURRENT STORE-TO-DC ASSIGNMENTS Total Mileage Per Week = 192,998

45. An Example • A distributor to fast-food restaurants with 12 DC’s serving 3922 restaurants with 80 vehicles. • Currently, DC’s serve from 209 to 644 restaurants. • TransCad was first used to determine optimal weekly delivery routes under the current restaurant-to-DC assignments. • TransCad was then used to re-assign restaurants-to-DC’s and determine approximately 400 vehicle routes that must be run each week.

46. OPTIMIZED STORE-TO-DC ASSIGNMENTS Total Mileage Per Week = 173,702

47. STORES WITH CHANGED ASSIGNMENTS Note: a total of 381 stores had changed DC assignments. Each dot may represent more than one store (in the same zipcode)

48. STORES WITH CHANGED ASSIGNMENTS Currently AssignedDC Optimally AssignedDC Cluster Net savings of 19,296 miles per week (10% reduction)

49. Agenda • Beyond mapping, Geographic Information Systems (GIS) with examples • Buffer and Overlay • Transportation Analysis • Advanced Descriptive Modeling example • Advanced Prescriptive Modeling example

50. Locating a proposed NICUmarket analysis and visualization with “perfect” data