Abstract

This case study is about DHL’s decision to relocate its European hub from Brussels in Belgium to Leipzig/Halle in Germany. This decision was triggered by the fact that DHL planned to spread its operations worldwide and Leipzig was located in the center of Europe, which would help DHL in achieving its objective. Also other advantages regarding facility location tilted the decision toward Leipzig/Halle. However, relocating the entire facility to a completely new place was a difficult and arduous task. This also involved the facility layout decisions in Leipzig/Halle. Finally, DHL had to look at the long-term perspective in terms of building the supply chain network. This case describes how a facility is relocated to a new location.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Identify the key factors to be considered when designing a distribution network.
• Understand the role of network design in a supply chain.
• Identify factors influencing supply chain network design decisions.
• Develop a framework for making network design decisions.
• Use optimization for facility location and capacity allocation decisions.

Keywords

Operations Management, Facility Location, Selection of Site, Operational Strategies, Operational Facilities, Logistics, Facility Layout, Inventory Management, Project Management, Supply Chain, Location Advantages, Sorting Facility, Hub and Spoke, Leipzig/Halle Hub, DHL