Optimization of Milk Distribution for Maximum Demand Coverage in Chihuahua, Mexico

Abstract

LICONSA is a Mexican federal government company with social responsibility. It manufactures and sold milk with beneficial prices. Its purpose is to support the population under poverty. The analysis of its data shows an imbalance in the levels of coverage finding the current distribution network to be not optimal. The main objective of this paper is to expand and improve coverage of this social program in Chihuahua, Mexico. To do so, we propose a methodology to maximize coverage applying the Maximum Covering Location Model. The methodology can be applied to any other state/county/city to improve coverage of this social program.