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62 - 62 Interactive Models for Operations and Supply Chain...

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Unformatted text preview: 62 Interactive Models for Operations and Supply Chain Management cannot be changing all of the time to keep up. However, when identifying the best layout, it is important to consider the layout that will best meet the most likely mix of products. Arrange the layout as below: Location Department A Design B Binding C Assembly D ' Paper E Printing m F Packaging a. This layout is very good when the product mix is 100 for each product. Change the product demands to Standard Book = 100, Custom Book = 250, and Standard Reprint = 100. What is the total distance for this product mix with this layout? b. How can the layout be improved? Identify the best layout for this product mix. What is the total distance for the best layout? Explain why your improvements worked. c. Identify the worst possible layout for this product mix. What is the total distance? How does it compare to the best layout for this product mix? Facility Decisio‘n Models 63 The Center of Gravity Model Location decisions for central warehouses that ship products to a number of retail— ers often have a goal of minimizing transportation costs. Total transportation costs associated with a time period are a function of the distance traveled to make a shipment and the number of shipments made during the period. The center of grav- ity method minimizes the total costs associated with shipments by finding the central location for the distribution center, given the number of shipments. The Center of Gravity Model allows the user to manipulate the environment in which the center of gravity technique would be used. In this environment, a central distribution center is being located among six retailers with varying shipments. By changing the number of shipments, or by dragging a retailer to a new location, the user can see the effects on the center of gravity location decision. Exhibit 6.2 shows the Center of Gravity Model. EXHIBIT 6.2 Screen View of the Center of Gravity Model Interactive Case A New Customer for RLX Logistics RLX Logistics is a third-party logistics (3PL) provider for several retail chains. RLX builds or, when possible, leases warehOuse facilities to provide a regionally centralized delivery point for products, stores them, and ships them as needed to ...
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