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1、 2007 Pearson EducationChapter 5Network Design in the Supply ChainSupply Chain Management(3rd Edition)5-1 2007 Pearson EducationOutlineuA strategic framework for facility locationuMulti-echelon networksuGravity methods for locationuPlant location models 5-2 2007 Pearson EducationNetwork Design Decis
2、ionsuFacility roleuFacility locationuCapacity allocationuMarket and supply allocation5-3 2007 Pearson EducationFactors InfluencingNetwork Design DecisionsuStrategic uTechnologicaluMacroeconomicuPoliticaluInfrastructureuCompetitiveuLogistics and facility costs5-4 2007 Pearson EducationThe Cost-Respon
3、se Time FrontierLocal FGMixRegional FGLocal WIPCentral FGCentral WIPCentral Raw Material and Custom productionCustom production with raw material at suppliersCostResponse TimeHiLowLowHi5-5 2007 Pearson EducationService and Number of FacilitiesNumber of FacilitiesResponseTime5-6 2007 Pearson Educatio
4、nCustomerDC 2007 Pearson EducationCustomerDC 2007 Pearson EducationCustomerDC 2007 Pearson EducationCustomerDC 2007 Pearson EducationCustomerDC 2007 Pearson EducationCosts and Number of FacilitiesCostsNumber of facilitiesInventoryTransportationFacility costs5-12 2007 Pearson EducationCost Buildup as
5、 a Function of Facilities5-13 2007 Pearson EducationA Framework forGlobal Site LocationPHASE ISupply ChainStrategyPHASE IIRegional FacilityConfigurationPHASE IIIDesirable SitesPHASE IVLocation ChoicesCompetitive STRATEGYINTERNAL CONSTRAINTSCapital, growth strategy,existing networkPRODUCTION TECHNOLO
6、GIESCost, Scale/Scope impact, supportrequired, flexibilityCOMPETITIVEENVIRONMENTPRODUCTION METHODSSkill needs, response timeFACTOR COSTSLabor, materials, site specificGLOBAL COMPETITIONTARIFFS AND TAXINCENTIVESREGIONAL DEMANDSize, growth, homogeneity,local specificationsPOLITICAL, EXCHANGERATE AND D
7、EMAND RISKAVAILABLEINFRASTRUCTURELOGISTICS COSTSTransport, inventory, coordination5-14 2007 Pearson EducationConventional Network5-15 2007 Pearson EducationTailored Network: Multi-Echelon Finished Goods Network5-16 2007 Pearson EducationGravity Methods for LocationuTon Mile-Center Solution x,y: Ware
8、house Coordinates xn, yn : Coordinates of delivery location n dn : Distance to delivery location n Fn : Annual tonnage to delivery location nknnnknnnnknnnknnnnndFDdFyDdFDdFxDyyxxdnnynnxnn111122)()(Min FDdnnn5-17 2007 Pearson EducationNetwork Optimization ModelsuAllocating demand to production facili
9、tiesuLocating facilities and allocating capacityWhich plants to establish? How to configure the network? Key Costs: Fixed facility cost Transportation cost Production cost Inventory cost Coordination cost5-18 2007 Pearson EducationDemand Allocation ModeluWhich market is served by which plant?uWhich
10、supply sources are used by a plant?xij = Quantity shipped from plant site i to customer j0,.,1,.,1,. .1111xKxDxxcijimjijjniijnimjijijnimjtsMin5-19 2007 Pearson EducationPlant Location with Multiple Sourcinguyi = 1 if plant is located at site i, 0 otherwiseuxij = Quantity shipped from plant site i to
11、 customer j1 , 0;,.,1,.,1,. .111111yyyKxDxxcyfimiiiinjijjniijnimjijijiniiknimjtsMin5-20 2007 Pearson EducationPlant Location with Single Sourcinguyi = 1 if plant is located at site i, 0 otherwiseuxij = 1 if market j is supplied by factory i, 0 otherwise1 , 0,.,1,.,1, 1. .,11111yxyKxDxxcDyfijnijmjtsjMiniiinjijniijnimjijijinii5-21 2007 Pearson EducationSummary of Learning ObjectivesuWhat is the role of network design decisions in the supply chain?uWhat are the factors influencing supply chain network design decisions?uDescribe a strategic framework f
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