Contenu connexe
Similaire à Supply chain management ch05 chopra (20)
Plus de Jamil Ahmed AKASH (8)
Supply chain management ch05 chopra
- 1. © 2007 Pearson Education
Chapter 5
Network Design in the Supply
Chain
Supply Chain Management
(3rd Edition)
5-1
- 2. © 2007 Pearson Education
Outline
A strategic framework for facility location
Multi-echelon networks
Gravity methods for location
Plant location models
5-2
- 3. © 2007 Pearson Education
Network Design Decisions
Facility role
Facility location
Capacity allocation
Market and supply allocation
5-3
- 4. © 2007 Pearson Education
Factors Influencing
Network Design Decisions
Strategic
Technological
Macroeconomic
Political
Infrastructure
Competitive
Logistics and facility costs
5-4
- 5. © 2007 Pearson Education
The Cost-Response Time Frontier
Local FG
Mix
Regional FG
Local WIP
Central FG
Central WIP
Central Raw Material and Custom production
Custom production with raw material at suppliers
Cost
Response Time HiLow
Low
Hi
5-5
- 6. © 2007 Pearson Education
Service and Number of Facilities
Number of Facilities
Response
Time
5-6
- 7. © 2007 Pearson Education
Customer
DC
Where inventory needs to be for a one week orderWhere inventory needs to be for a one week order
response time - typical results --> 1 DCresponse time - typical results --> 1 DC
- 8. © 2007 Pearson Education
Customer
DC
Where inventory needs to be for a 5 day orderWhere inventory needs to be for a 5 day order
response time - typical results --> 2 DCsresponse time - typical results --> 2 DCs
- 9. © 2007 Pearson Education
Customer
DC
Where inventory needs to be for a 3 day orderWhere inventory needs to be for a 3 day order
response time - typical results --> 5 DCsresponse time - typical results --> 5 DCs
- 10. © 2007 Pearson Education
Customer
DC
Where inventory needs to be for a next day orderWhere inventory needs to be for a next day order
response time - typical results --> 13 DCsresponse time - typical results --> 13 DCs
- 11. © 2007 Pearson Education
Customer
DC
Where inventory needs to be for a same day / nextWhere inventory needs to be for a same day / next
day order response time - typical results --> 26 DCsday order response time - typical results --> 26 DCs
- 12. © 2007 Pearson Education
Costs and Number of Facilities
Costs
Number of facilities
Inventory
Transportation
Facility costs
5-12
- 13. © 2007 Pearson Education
Percent ServicePercent Service
Level WithinLevel Within
Promised TimePromised Time
TransportationTransportation
Cost Buildup as a Function of Facilities
CostofOperationsCostofOperations
Number of FacilitiesNumber of Facilities
InventoryInventory
FacilitiesFacilities
Total CostsTotal Costs
LaborLabor
5-13
- 14. © 2007 Pearson Education
A Framework for
Global Site Location
PHASE I
Supply Chain
Strategy
PHASE II
Regional Facility
Configuration
PHASE III
Desirable Sites
PHASE IV
Location Choices
Competitive STRATEGY
INTERNAL CONSTRAINTS
Capital, growth strategy,
existing network
PRODUCTION TECHNOLOGIES
Cost, Scale/Scope impact, support
required, flexibility
COMPETITIVE
ENVIRONMENT
PRODUCTION METHODS
Skill needs, response time
FACTOR COSTS
Labor, materials, site specific
GLOBAL COMPETITION
TARIFFS AND TAX
INCENTIVES
REGIONAL DEMAND
Size, growth, homogeneity,
local specifications
POLITICAL, EXCHANGE
RATE AND DEMAND RISK
AVAILABLE
INFRASTRUCTURE
LOGISTICS COSTS
Transport, inventory, coordination
5-14
- 15. © 2007 Pearson Education
Conventional Network
CustomerCustomer
StoreStore
MaterialsMaterials
DCDC
ComponentComponent
ManufacturingManufacturing
VendorVendor
DCDC
FinalFinal
AssemblyAssembly
FinishedFinished
Goods DCGoods DC
ComponentsComponents
DCDC
VendorVendor
DCDC PlantPlant
WarehouseWarehouse
FinishedFinished
Goods DCGoods DC
CustomerCustomer
DCDC
CustomerCustomer
DCDC
CustomerCustomer
DCDC
CustomerCustomer
StoreStore
CustomerCustomer
StoreStore
CustomerCustomer
StoreStore
CustomerCustomer
StoreStore
VendorVendor
DCDC
5-15
- 16. © 2007 Pearson Education
Tailored Network: Multi-Echelon
Finished Goods Network
RegionalRegional
FinishedFinished
Goods DCGoods DC
RegionalRegional
FinishedFinished
Goods DCGoods DC
Customer 1Customer 1
DCDC
Store 1Store 1
NationalNational
FinishedFinished
Goods DCGoods DC
Local DCLocal DC
Cross-DockCross-Dock
Local DCLocal DC
Cross-DockCross-Dock
Local DCLocal DC
Cross-DockCross-Dock
Customer 2Customer 2
DCDC
Store 1Store 1
Store 2Store 2
Store 2Store 2
Store 3Store 3
Store 3Store 3
5-16
- 17. © 2007 Pearson Education
Gravity Methods for Location
Ton Mile-Center Solution
– x,y: Warehouse Coordinates
– xn, yn : Coordinates of delivery
location n
– dn : Distance to delivery location
n
– Fn : Annual tonnage to delivery
location n
∑
∑
∑
∑
−−
=
=
=
=
=
=
+=
k
n n
n
k
n n
nn
k
n n
n
k
n n
nn
n
d
FD
d
FyD
d
FD
d
FxD
yyxxd
n
n
y
n
n
x
nn
1
1
1
1
22
)()(
Min ∑ FDd nn n
5-17
- 18. © 2007 Pearson Education
Network Optimization Models
Allocating demand to production facilities
Locating facilities and allocating capacity
Which plants to establish? How to configure the network?
Key Costs:
• Fixed facility cost
• Transportation cost
• Production cost
• Inventory cost
• Coordination cost
5-18
- 19. © 2007 Pearson Education
Demand Allocation Model
Which market is served
by which plant?
Which supply sources
are used by a plant?
xij = Quantity shipped from
plant site i to customer j
0
,...,1,
,...,1,
..
1
1
1 1
≥
=≤
==
∑
∑
∑∑
=
=
= =
x
Kx
Dx
xc
ij
i
m
j
ij
j
n
i
ij
n
i
m
j
ijij
ni
mj
ts
Min
5-19
- 20. © 2007 Pearson Education
Plant Location with Multiple Sourcing
yi = 1 if plant is located
at site i, 0 otherwise
xij = Quantity shipped
from plant site i to
customer j
}1,0{;
,...,1,
,...,1,
..
1
1
1
1 11
∈≤
=≤
==
+
∑
∑
∑
∑∑∑
=
=
=
= ==
yy
yKx
Dx
xcyf
i
m
i
i
ii
n
j
ij
j
n
i
ij
n
i
m
j
ijiji
n
i
i
k
ni
mj
ts
Min
5-20
- 21. © 2007 Pearson Education
Plant Location with Single Sourcing
yi = 1 if plant is located
at site i, 0 otherwise
xij = 1 if market j is
supplied by factory i, 0
otherwise
}1,0{
,...,1,
,...,1,1
..
,
1
1
1 11
∈
=≤
==
+
∑
∑
∑∑∑
=
=
= ==
yx
yKxD
x
xcDyf
ij
nij
mj
ts
jMin
i
ii
n
j
ij
n
i
ij
n
i
m
j
ijiji
n
i
i
5-21
- 22. © 2007 Pearson Education
Summary of Learning Objectives
What is the role of network design decisions in
the supply chain?
What are the factors influencing supply chain
network design decisions?
Describe a strategic framework for facility
location.
How are the following optimization methods used
for facility location and capacity allocation
decisions?
– Gravity methods for location
– Network optimization models
5-22
Notes de l'éditeur
- Notes:
- Notes:
- Notes:
- Notes:
- Notes:
- Notes:
- Notes:
- Notes:
- Notes:
- Notes:
- Notes:
- Notes:
- Notes: