供应链chnetworkplanning.ppt

Chapter 3 Network Planning 3.1 Why Network Planning? First, Find the right balance between inventory, transportation and manufacturing costs (Network design) 3.1 Why Network Planning? Second, Match supply and demand under uncertainty by positioning and managing inventory effectively (Inventory position) 3.1 Why Network Planning? Utilize resources effectively by sourcing products from the most appropriate manufacturing facility (Resource allocation by Supply chain master schedule) Also see Bis case on page 73 Three Hierarchical Steps Network design Number, locations and size of manufacturing plants and warehouses Inventory positioning: Related to the inventory management strategies Resource allocation: Determine whether production and packaging of different products is done at the right facility How much capacity each plant should have to meet seasonal demand? 3.2 Network Design Overview Physical configuration and infrastructure of the supply chain. A strategic decision with long-lasting effects on the firm. (not easy to change) Decisions relating to plant and warehouse location as well as distribution and sourcing Key Strategic Decisions Determining the appropriate number of facilities such as plants and warehouses. Determining the location of each facility. Determining the size of each facility. Allocating space for products in each facility. Determining sourcing requirements(Inbound logistics). Determining distribution strategies, i.e., the allocation of customers to warehouse (Outbound Logistics) Objective and Trade-Offs Objective: Design or reconfigure the logistics network in order to minimize annual system-wide cost subject to a variety of service level requirements Increasing the number of warehouses typically yields: An improvement in service level due to the reduction in average travel time to the customers An increase in inventory costs due to increased safety stocks. An increase in overhead and setup costs A reduction in outbound transportation