Murray's Law Networks
Applies to Series D+ companies building full distribution networks with $500M+ revenue.
Framework for calculating optimal number and size of facilities in a distribution network, based on biological principle that parent vessel radius cubed equals sum of children radii cubed. Applies to Series D+ companies building full distribution networks with $500M+ revenue.
When to Use Murray's Law Networks
Use when building or optimizing multi-tier distribution networks at scale (16,500+ orders/day, $500M+ revenue). Not applicable for early-stage companies who should use 3PLs instead.
How to Apply
Calculate Total Throughput Required
Daily throughput = (Total customers × Orders per customer per year) / 365 days
Outputs
- Daily order volume target
Determine Facility Tiers
Define 4 tiers: Tier 1 (Trunk) = Few large regional hubs, Tier 2 (Major branches) = More medium metro hubs, Tier 3 (Minor branches) = Many small local hubs, Tier 4 (Twigs) = Thousands of pickup points
Outputs
- Tier definitions and capacity benchmarks
Calculate Optimal Facility Count Per Tier
Tier 1 = Daily throughput / Large facility capacity (75,000 orders/day). Tier 2 = Tier 1 × 3. Tier 3 = Tier 2 × 4. Tier 4 = Tier 3 × 15.
Outputs
- Facility count per tier
Validate with Murray's Law
Check that Trunk capacity³ ≈ Sum of all branch capacities³. Each tier should handle 110-120% of previous tier's volume. Adjust facility counts if imbalanced.
Outputs
- Validated network architecture