AI-Driven Network Design: Optimizing Global Distribution Center Placement for E-Commerce Efficiency

The evolution of e-commerce has necessitated highly efficient supply chain networks to meet growing consumer demands.A crucial aspect of supply chain efficiency is network design, particularly the strategic placement of distribution centers (DCs) to optimize logistics operations.Traditional network design methods, reliant on manual calculations and heuristic approaches, are increasingly being supplemented and replaced by artificial intelligence (AI)-driven methodologies.This paper explores the role of AI in optimizing DC placement at a global scale, comparing various AI-driven methodologies and recommending a superior technique.A pseudo-code implementation is also provided to demonstrate how AI can be practically applied to network design.Through an in-depth analysis, we illustrate how AI enhances efficiency, reduces costs and improves decision-making in global e-commerce supply chains.