Documente Academic
Documente Profesional
Documente Cultură
(3rd Edition)
Chapter 5
Network Design in the Supply
Chain
Hi Local FG
Mix
Regional FG
Local WIP
Cost Central FG
Central WIP
Number of Facilities
Customer
DC
Customer
DC
Customer
DC
Customer
DC
Customer
DC
Inventory
Transportation
Number of facilities
Percent Service
Level Within
Promised Time
Facilities
Inventory
Transportation
Labor
Number of Facilities
© 2007 Pearson Education 5-13
A Framework for
Global Site Location
Competitive STRATEGY GLOBAL COMPETITION
PHASE I
Supply Chain
INTERNAL CONSTRAINTS Strategy
Capital, growth strategy, TARIFFS AND TAX
existing network INCENTIVES
PHASE III
Desirable Sites AVAILABLE
INFRASTRUCTURE
PRODUCTION METHODS
Skill needs, response time
Materials Customer
Vendor Finished Customer
DC Store
DC Goods DC DC
Customer
Component Store
Vendor Manufacturing
DC Plant Customer Customer
Warehouse DC Store
Components
DC Customer
Vendor Store
DC Finished
Customer
Goods DC
Final DC Customer
Assembly Store
Store 3
– dn : Distance to delivery x n 1 n
D nF
k
location n
d
n
location n D ny F
k
d
n n
y n 1 n
D nF
k
Min d n Dn F n dn 1
n
Key Costs:
x D , j 1,..., m
ij j
x ij
0
customer j x D , j 1,..., m
i 1
ij j
x K y , i 1,..., n
j 1
ij i i
y k ; y {0,1}
i 1
i i
D j x K y , i 1,..., n
j 1
ij i i
xij , y {0,1}i