BALLOU14 - 14-1The Network Planning ProcessChapter 14Two...

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Unformatted text preview: 14-1The Network Planning ProcessChapter 14Two stonecutters were working on the reconstruction of St. Paul's in London when Sir Christopher Wren asked each what he was doing. The first replied, "I am cutting stone." The second answered, "I am building a cathedral." Christopher Wren14-2Network Planning in Location StrategyPLANNINGORGANIZINGCONTROLLINGTransport StrategyTransport fundamentals Transport decisionsCustomer service goals The product Logistics service Ord . proc. & info. sys.Inventory Strategy Forecasting Inventory decisions Purchasing and supply scheduling decisions Storage fundamentals Storage decisionsLocation Strategy Location decisionsThe network planning processPLANNINGORGANIZINGCONTROLLINGTransport StrategyTransport fundamentals Transport decisionsCustomer service goals The product Logistics service Ord . proc. & info. sys.Inventory Strategy Forecasting Inventory decisions Purchasing and supply scheduling decisions Storage fundamentals Storage decisionsLocation Strategy Location decisionsThe network planning process14-3The Planning ProblemConfigure the facilities of the supply chain from source points to customersConsider all major logistical costs, namely transportation, inventory, and facilityConsider practical restrictions, such as capacity and customer servicePosition the analysis toward top management, strategic concernsTypical data itemsCommon data sourcesConverting data to useful planning informationData for PlanningSources:plantsvendorsportsRegionalwarehouses,stockingpointsFieldwarehouses,stockingpointsCustomers,demandcentersDemandSupplySupplyProduction/purchasecostsInventory &warehousingcostsInventory &warehousingcostsTransportationcostsTransportationcostsA Generalized Product Flow Network14-4WarehousingWarehousingTransportationTransportationVendors/plants/portsTransportationFactoryTransportationCustomersInformationflowsThe Supply ChannelThese facilities need to be positioned and sized14-514-6Geocoding DataLinear gridLatitude-LongitudeOther coding schemesMadridMilan1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23Horizontal coordinates, X1234567891011121314151617181920212223Vertical coordinates, YXPlantWarehouseLinear grid14-7Estimating Transport CostsFor private trucking for accounting records for fleetData Category Fact Weekly CostWeekly mileage 2700 milesWeekly hours on duty 66 hrs./wk....
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This note was uploaded on 11/04/2010 for the course OPR 040 taught by Professor Ballau during the Spring '10 term at E. Kentucky.

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BALLOU14 - 14-1The Network Planning ProcessChapter 14Two...

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