EGN_5623 Integrated Distribution and Productin Planning 10-29-11

EGN_5623 Integrated Distribution and Productin Planning 10-29-11

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Production Planning Production Planning (DP/PP)  (DP/PP)      EGN 5623   Enterprise Systems Optimization EGN 5623   Enterprise Systems Optimization (Professional MSEM) (Professional MSEM) Fall, 2011  Fall, 2011     
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Integrated Distribution  Integrated Distribution  EGN 5623   Enterprise Systems Optimization EGN 5623   Enterprise Systems Optimization (Professional MSEM) (Professional MSEM) Fall, 2011  Fall, 2011 
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SCM Overview SCM Overview SCM aims at managing and optimizing the information flow and the material flow through a network of suppliers, manufacturers, distributors, and customers.
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SCM Overview SCM Overview
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SCM Overview SCM Overview Traditionally, distribution planning and production planning are carried out, independent of each other. Each seeks its own local optimum. In SCM, distribution planning and production planning decisions should be integrated to promote global optimum. This integrated distribution and production planning aims at : Reducing the costs for sourcing products and raw materials, Improving customer service, Dramatically reducing on-hand stocks, and Making better use of company resources.
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An Integrated DP/PP Problem An Integrated DP/PP Problem
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An Integrated DP/PP Problem An Integrated DP/PP Problem An integrated DP and PP problem: Suppose a supply chain system contains two distribution centers (XXW1 and XXW2) and two plants (XX01 and XX02). There are two finished products for selling: GIN and KORN. GIN is produced in both plants XX01 and XX02, and KORN is only produced in plant XX02. The key semi-finished good for both products is ALC, which is only produced in plant XX01 and can be sent from the plant XX01 to XX02. The DC XXW1 is supplied from both plant and DC XXW2 is supplied only by XX02 (see the Figure 10.1) This is a classical transportation problem.
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An Integrated DP/PP Problem An Integrated DP/PP Problem Some planning decisions include: 1. Determine the source for warehouse XXW1: Procure GIN from XX01 or XX02, depending on the load in plants XX01 and XX02. 1.Prioritize production for plant XX02: Produce GIN for both warehouses XXW1 or XXW2, depending on whether XX01 has the capacity to supply additional quantities to XXW1. 1.Prioritize the production in plant XX02: Produce GIN or KORN, depending on the product priorities.
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An Integrated DP/PP Problem An Integrated DP/PP Problem 1. Handle ALC: to ship ALC to XX02 or process it in XX01, depending on the production costs, the market and the product priorities and the demand structure in XX02. 1.
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EGN_5623 Integrated Distribution and Productin Planning 10-29-11

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