class%2013-14%20Network%20Planning-Handout

class%2013-14%20Network%20Planning-Handout - 1 San Jose...

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Unformatted text preview: 1 San Jose State University College of Business Network Planning Bis Corporation Eight manufacturing plants produce about 4,000 different products Products are shipped from 8 plants to 17 warehouses and from there to about 2,000 retail stores The current production and distribution strategy needs to be updated 2 San Jose State University College of Business Network Planning 1. Should Bis switch from current one-tier distribution network to a two-tier network with primary warehouses serving secondary warehouses? The number, location, and size of warehouses? 1. Where to position inventory and how much? 1. Which plant should produce which product? 3 San Jose State University College of Business Why Network Planning? Find the right balance between inventory, transportation and manufacturing costs Match supply and demand under uncertainty by positioning and managing inventory effectively Utilize resources effectively by sourcing products from the most appropriate manufacturing facility 4 San Jose State University College of Business Three Hierarchical Steps Network design Number, locations and size of manufacturing plants and warehouses Assignment of retail outlets to warehouses Inventory positioning: Identifying stocking points Selecting facilities that will produce to stock and thus keep inventory Facilities that will produce to order and hence keep no inventory Related to the inventory management strategies Resource allocation: Determine whether production and packaging of different products is done at the right facility 5 San Jose State University College of Business Network Design Physical configuration and infrastructure of the supply chain A strategic decision with long-lasting effects on the firm Decisions relating to plant and warehouse location as well as distribution and sourcing 6 San Jose State University College of Business Reevaluation of Infrastructure Changes in: demand patterns product mix production processes sourcing strategies cost of running facilities. Mergers and acquisitions may mandate the integration of different logistics networks 7 San Jose State University College of Business Key Strategic Decisions Determining the appropriate number of facilities such as plants and warehouses. Determining the location of each facility....
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This note was uploaded on 09/08/2010 for the course BUS 10 at San Jose State.

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class%2013-14%20Network%20Planning-Handout - 1 San Jose...

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