Organizations employ Greenfield Analysis (GFA or "center of gravity analysis") to identify the ideal location and number of distribution facilities. GFA is widely utilized in supply chain planning since it assists businesses in making better strategic choices.

Greenfield analysis allows decision makers to quickly:

• Determine the best locations of "greenfield" sites based on proximity to customers, minimizing overall transportation cost between supply and demand
• Determine which customers can be serviced from each facility
• Determine the optimal number of facilities for the supply chain
• Determine the optimal geographic location of facilities to minimize costs
• Determine the number of facilities needed to meet specific demand
• Explore what-if scenarios for demand and supply changes.