Cost of traveling from depot to each customer is

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Unformatted text preview: eling from depot to each customer is known. (c0j = cost of making one trip from depot to customer j) 0j Also known, the cost of trips between customers. (ciijj = Also cost of making a trip from customer i to customer j) to Modeling Assume that ciijj = cji . Start with assigning separate vehicles to each location, and continue by linking customers based on the savings made from the links. made Links must satisfy feasibility constraints. Links This method may only solve small problems, say n =100. This 8 Example 6.4 Designing Designing for Supply Chain Efficiency Efficiency Several companies have been able to cut costs and improve service by postponing the final configuration of the product until the latest possible point in the supply chain. Examples: Benetton producing “grey stock” Benetton Hewlett Packard printer configuration Hewlett Postponement of final programming of semiconductor devices devices Assemble to order rather than assemble to stock (Dell Computer) Computer) 9 Designing Designing for Supply Chain Efficiency Efficiency Many firms now consider SCM issues in the design phase of product development. (This has been referred to DFL or Design for Logistics). One example is IKEA whose furniture comes in simple to assemble kits that allows them to store the furniture in the same warehouse-llike locations where they are displayed and warehouse ike sold. Designing Designing for Supply Chain Efficiency Efficiency Part of streamlining the supply chain is reducing the number and variety of suppliers. The Japanese have been very successful in this arena. Another example: In the mid 1980’s Xerox trimmed its number of suppliers from 5,000 to 400. Overseas suppliers were chosen based on cost, and local suppliers were chosen based on delivery speed. 10 Designi...
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This document was uploaded on 03/23/2014.

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