How do I use COG analysis in my network design?
The best way to use COG results is to experiment with different settings. These results will give insight about candidate locations, which you can then take to Network Design for more detailed modeling.
How does COG calculate locations based on the customer demand volumes?
Solving for Number of COGs:
When you ask for a number of COGs, the model places them to minimize transport cost to service all customers. The service level (time) is ignored. Locations will be closer to high demand customers. Low demand customers may have very long drive times.
Solving for Max Drive Time:
When you ask for max drive time, the model places the minimum COGs so that the service level (time) is met for all customers. Cost is ignored. Locations will be placed closer to all customers, no matter their demand size.