LPC was originally approached to review the layout and fit out requirement for a new DC to ensure that it could meet its service levels and HMRC compliance.

To this end LPC was retained to carry out a number of simulation exercises to determine the resource and financial impact that various scenarios would have on the distribution operation.

The simulation exercises were undertaken using Dips which is a purpose developed computer model which is very widely used for Facilities Location modelling and Transport Planning. It uses actual road networks, and can “self-optimise” location solutions as well as being used for the development and evaluation of optional scenarios. When being used for Location Modelling Dips can work either with individual collection and delivery points or with “clusters” of collection and delivery points.

LPC was retained by Denny to:

• To identify a range of options for distributing finished products in Northern Ireland.
• To identify the costs and key attributes of each option.

To evaluate each option in terms of:

1. Cost minimisation
2. Product date maximisation
3. Business simplification
4. The ability to meet future business needs
5. Flexibility and reliability