MSCMCheatSheets - Chapter 05 Network Design in the Supply...

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Phase I: Chapter 05 Network Design in the Supply Chain Define a Supply Chain Strategy Based on the competitive strategy of the firm, its resulting supply chain strategy, an analysis of the competition, any economies of scale or scope, any any constraints, managers must determine the supp y chain design for the firm. Phase II: Define the Regional Facility Configuration with Network Optimization Models The Capacitated Plant Location Model Parameters n number of potential plant locations m number of markets or demand points D annua demand from market j K potential capacity of plant i f annualized fixed cost of keeping factory i open c cost of producing and shipping one unit from :actory i to market j Decision Variables y plant i open (1) or not (0) x quantity shipped from plant i to market j Minimize i.(x e " /J) S Ke,JYe,J } - - Y = {O, l} and xC,,}J ~ ° (5.1) (5.2) (5.3) Phase III: Select a Set of Desirable Potential Sites with Gravity Location Models Parameters x, y coordinate location of either a market or supply source n F cost of shipping one unit one mile between facility and n d distance between facility location (x, y) and n D quantity to be shipped between facility and n TC total transportation cost Decision Variables x, y coordinate location of facility de"J = Je x - xr"l/ + (Y - Yr"l/ Minimize , TC = L(dG,J·De"J·FG,J)
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This note was uploaded on 05/12/2010 for the course ESI 6323 taught by Professor Guan during the Summer '09 term at University of Florida.

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MSCMCheatSheets - Chapter 05 Network Design in the Supply...

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