lecture5-SupplyChain_NetworkDesign

lecture5-SupplyChain_NetworkDesign - ESI 6323 Network...

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Unformatted text preview: ESI 6323 Network Design in the Supply Chain 1 Outline • A strategic framework for facility location • Multi-echelon networks • Gravity methods for location • Plant location models 5-1 2 Network Design Decisions • Facility role • Facility location • Capacity allocation • Market and supply allocation 5-2 3 Factors Influencing Network Design Decisions • Strategic • Technological • Macroeconomic • Political • Infrastructure • Competitive • Logistics and facility costs 5-3 4 Service and Number of Facilities Number of Facilities Response Time 5-4 5 Customer DC Where inventory needs to be for a one week order response time - typical results --> 1 DC 6 Customer DC Where inventory needs to be for a 5 day order response time - typical results --> 2 DCs 7 Customer DC Where inventory needs to be for a 3 day order response time - typical results --> 5 DCs 8 Customer DC Where inventory needs to be for a next day order response time - typical results --> 13 DCs 9 Customer DC Where inventory needs to be for a same day / next day order response time - typical results --> 26 DCs 10 Costs and Number of Facilities Costs Number of facilities Inventory Transportation Facility costs 5-10...
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This note was uploaded on 03/02/2012 for the course ESI 6323 taught by Professor Guan during the Spring '09 term at University of Florida.

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lecture5-SupplyChain_NetworkDesign - ESI 6323 Network...

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