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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 Strategy•Transport 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 decisions•The network planning processPLANNINGORGANIZINGCONTROLLINGTransport Strategy•Transport 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 decisions•The network planning process14-3The Planning Problem•Configure the facilities of the supply chain from source points to customers•Consider all major logistical costs, namely transportation, inventory, and facility•Consider practical restrictions, such as capacity and customer service•Position the analysis toward top management, strategic concerns•Typical data items•Common data sources•Converting 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 Data•Linear grid•Latitude-Longitude•Other 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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BALLOU14 - 14-1The Network Planning ProcessChapter 14Two...

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