Advanced Location and Routing Models
Sunderesh S. Heragu · 2018
The Nike distribution center (DC) in Laakdal, Belgium (see Figure 12.1), which employs 800 people and has an annual turnover of 10.5 million units of footwear and apparel, covers 25 acres and cost $139 million to build. A location and design study was done in 1992 and the building was completed in two phases, the last in 1995. Let us examine why Nike selected Laakdal from several available locations in Europe. First, one of Nike’s main business objectives was to serve 75% of its customers in less than 24 hours. Because of its proximity to major customer markets, Laakdal was a natural choice. The proximity to ports of entry for footwear and apparel manufactured overseas, the road network in and around Laakdal, and access to major highways were contributing factors. Because its citizens are required to go to school at least until the age of 18, Belgium has an educated workforce. Other factors also favored Laakdal.