sma_fac_location

sma_fac_location - Facility Location Facility and...

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Facility Location Facility Location Facility Location and Distribution and Distribution and Distribution System Planning System Planning System Planning Thomas L. Magnanti Thomas L. Magnanti
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Today’s Agenda Today’s Agenda Why study facility location? Issues to be modeled Basic models Fixed charge problems Core uncapacitated and capacitated facility location models Large-scale application (Hunt- Wesson Foods) Why study facility location? Issues to be modeled Basic models Fixed charge problems Core uncapacitated and capacitated facility location models Large-scale application (Hunt- Wesson Foods)
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Logistics Industry Logistics Industry U.S. logistics industry: $900 billion - almost double the size of the high-tech industry: > 10 percent of the U.S. gross domestic product 11 per cent of Singapore's GDP with a growth of 9 per cent in year 2000 Singapore Applications Programme (LEAP) 2001 Global logistics: $3.43 trillion 1998, U.S. trucking industry revenues just under $200 billion 7.7 million trucks carried over 1 trillion ton miles of freight U.S. logistics industry: $900 billion - almost double the size of the high-tech industry: > 10 percent of the U.S. gross domestic product 11 per cent of Singapore's GDP with a growth of 9 per cent in year 2000 Singapore Applications Programme (LEAP) 2001 Global logistics: $3.43 trillion 1998, U.S. trucking industry revenues just under $200 billion 7.7 million trucks carried over 1 trillion ton miles of freight
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Singapore Retail 21 Plan Singapore Retail 21 Plan
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Basic Issue Basic Issue Where to locate and how to size facilities? How to meet customer demands from the facilities? Which facility (facilities) serve each customer? How much customer demand is met by each facility? Where to locate and how to size facilities? How to meet customer demands from the facilities? Which facility (facilities) serve each customer? How much customer demand is met by each facility? Facilities might be warehouses, retail outlets, wireless bay stations, communication concentrators
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Transportation Costs Vehicles, Drivers, Fuel Warehousing Facility Construction/Rental, Handling Costs, Inventory Customer Service Service Time, Single Sourcing Transportation Costs Vehicles, Drivers, Fuel Warehousing Facility Construction/Rental, Handling Costs, Inventory Customer Service Service Time, Single Sourcing
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Effect of More Facilities Effect of More Facilities Effect of More Facilities + + + - - - Fixed Costs Fixed Fixed Costs Costs Transportation Costs Transportation Transportation Costs Costs System Trade-offs System Trade-offs
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Effect of “Individualized” Service (e.g., Direct Shipments) Effect of “Individualized” Effect of “Individualized” Service (e.g., Direct Shipments) Service (e.g., Direct Shipments) + + + - - - Service Service Service Costs Costs Costs System Trade-offs System Trade-offs
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Nature of Costs Nature of Costs Fixed Costs
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This note was uploaded on 12/04/2011 for the course ESD 15.094 taught by Professor Jiesun during the Spring '04 term at MIT.

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sma_fac_location - Facility Location Facility and...

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