091809LP and Supply Chain Design_RCL_edit

091809LP and Supply Chain Design_RCL_edit - Supply Chain...

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upply Chain esign Supply Chain Design Using Linear Programming Prof. Leachman E10, IEOR Module 8 September 2009 18 September, 2009
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Supply Chain Structure
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Location Example
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Supply Chain Example: Chrysler Chrysler’s PT Cruiser’s design is based on the Neon, and it turned out to be very popular soon ter its deb t in 2000 after its debut in 2000. Its dedicated plant in Toluca, Mexico, was not able satisfy the unexpectedly high demand. to satisfy the unexpectedly high demand. However, at the same time, the dedicated plant for the Neon in Belvidere, Illinois, was underutilized. If Chrysler could make cross production, even with some inefficiency or additional cost, an estimated ditional $240M pretax profit could be gained additional $240M pretax profit could be gained.
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Typical Supply Chain A Typical Supply Chain Network Design Model Several products are produced at several plants. ach plant has a known production capacity Each plant has a known production capacity. There is a known demand for each product in each stomer zone customer zone. Demands are satisfied by shipping the products ia regional distribution centers. via regional distribution centers. There may be an upper bound on total throughput at each distribution center.
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A Typical Network Design Model here may be an upper bound on the distance There may be an upper bound on the distance between a distribution center and a market area served by it A set of potential location sites for the new facilities
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091809LP and Supply Chain Design_RCL_edit - Supply Chain...

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