- SINGLE FACILITY LOCATION MODELS Prof.Dr Füsun Ülengin 2009 1 Facility Location Decisions  Classifying location decisions  Driving

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Unformatted text preview: SINGLE FACILITY LOCATION MODELS Prof.Dr. Füsun Ülengin, 2009 1 Facility Location Decisions  Classifying location decisions  Driving force (critical factor - traffic, labor rates, emergency facilities, obnoxious facilities)  Number of facilities  Discrete vs. continuous choices  Data aggregation  Time Horizon 2 Prof.Dr. Füsun Ülengin, 2009 Facility Location in Location Strategy PLANNING ORGANIZING CONTROLLING Transport Strategy • Transport fundamentals • Transport decisions Customer service goals • The product • Logistics service • Ord. proc. & info. sys. Inventory Strategy • Forecasting • Inventory decisions • Purchasing and supply scheduling decisions • Storage fundamentals • Storage decisions Location Strategy • Location decisions • The network planning process PLANNING ORGANIZING CONTROLLING Transport Strategy • Transport fundamentals • Transport decisions Customer service goals • The product • Logistics service • Ord. proc. & info. sys. Inventory Strategy • Forecasting • Inventory decisions • Purchasing and supply scheduling decisions • Storage fundamentals • Storage decisions Location Strategy • Location decisions • The network planning process 3 Prof.Dr. Füsun Ülengin, 2009 Location Overview What's located?  Sourcing points  Plants  Vendors  Ports  Intermediate points  Warehouses  Terminals  Public facilities (fire, police, and ambulance stations)  Service centers  Sink points  Retail outlets  Customers/Users 4 Prof.Dr. Füsun Ülengin, 2009 Location Overview (Cont’d) Key Questions  How many facilities should there be?  Where should they be located?  What size should they be? Why Location is Important  Gives structure to the network  Significantly affects inventory and transportation costs  Impacts on the level of customer service to be achieved 5 Prof.Dr. Füsun Ülengin, 2009 Methods of Solution  Single warehouse location – Graphic – Grid, or center-of-gravity, approach  Multiple warehouse location – Simulation – Optimization – Heuristics Location Overview (Cont’d) 6 Prof.Dr. Füsun Ülengin, 2009 Nature of Location Analysis Manufacturing (plants & warehouses) Decisions are driven by economics . Relevant costs such as transportation, inventory carrying, labor, and taxes are traded off against each other to find good locations....
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This note was uploaded on 11/10/2009 for the course LOGISTICS 20091 taught by Professor Fusunulengin during the Spring '09 term at Istanbul Technical University.

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- SINGLE FACILITY LOCATION MODELS Prof.Dr Füsun Ülengin 2009 1 Facility Location Decisions  Classifying location decisions  Driving

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