AbstractAn account is given of how an existing distribution structure was examined. Two questions were answered. First, what is the minimum cost solution given that one was starting up a new system? Secondly, what changes are needed to the present structure to obtain the maximum benefit. The steps taken in building simple models to describe the system; and the transition from the answer given to the first question to a programme for implementation are outlined. The proposals were implemented and the savings actually achieved were comparable with those anticipated.