www.promodel.com 888.900.3090 | saleshelp@promodel.com Volkswagen Saves Millions on Delivery Using Simulation BACKGROUND Volkswagen (VW) manufactures the vehicles marketed in North America at two plants, one in Germany and the other in Mexico. Vehicles are first shipped to one of the five U.S. ports that act like distribution centers (DCs). They are then transported to the dealerships at major market areas, mainly by trucks. The company aims to improve its vehicle distri- bution network with two major objectives: 1) to improve customer service, vehicle delivery times, and market respon- siveness, and 2) to reduce the total distribution and inventory holding costs. Production Modeling Corporation (PMC) was brought on to model the delivery system. PMC’s approach to improving the

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