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MITESD_273JF09_lec04

MITESD_273JF09_lec04 - 1.270J/ESD.273J 270J/ESD Logistics...

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1 270J/ESD 273J 1.270J/ESD.273J Logisti tics and Di d Distrib ibuti tion Systems Dynamic Economic Lot Sizing Model 1
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Outline { The Need for DELS { DELS without capacity constraints: z ZIO policy; z Shortest path algorithm. { DELS with capacity constraints: z C it t i d d Capacity constrained producti tion sequences; z Shortest path algorithm. 2
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Strategic Sourcing Inputs Transportation costs, rules for shipping out of territory overflow Supplier WH cost, capacity, safety stock targets, and current on hand territory overflow facilities constraints, costs, fixed orders, etc and current on-hand position Mfg constraints, costs, run rules, fixed production schedules set ups tooling etc Current demand forecast by forecast Product info and BOM 3 schedules, set-ups, tooling, etc. by time period y location by time period
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Key Drivers in Sourcing Decisions Freight costs for existing and potential lanes Availability at different times of the year Freight Production Raw Materials Duties for different customer countries & Duties Capabilities Locations Mfg Costs Sourcing Decisions Suppliers Plants Warehouses Customers Products Demand Demand by product by customer Product attributes BOM information Purchase prices What can be made where, tooling, etc. Mf Mfg speeds & capacities Setups, batches, yield loss, etc. Production costs Allocation of fixed & variable overheads Economies of scale Special rules and Monthly or weekly forecasts constraints 4
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