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Supply Chain Management: Logistics Network Design

Supply Chain Management: Logistics NetworkDesignDonglei of Business Administration, University of New Brunswick, NB Canada FrederictonE3B 9Y2 Donglei Du (UNB)SCM1 / 67 Table of contents I1 IntroductionThe Logistics NetworkMajor Steps in Network Design2A Facility Location Problem3 Optimial Distribution and outsourcing4 Maximum flow problem5 Network synthesis problemOffline versionOnline versionDonglei Du (UNB)SCM2 / 67 Section 1 IntroductionDonglei Du (UNB)SCM3 / 67 Subsection 1 The Logistics NetworkDonglei Du (UNB)SCM4 / 67 The Logistics Network IThe objective of this chapter is to present some issues involvedin the Design and configuration of the Logistics these are strategic decisions because they have along-standing effect on the Logistics Network consists of:Facilities:Plants/Vendors PortsWarehouseRetailers/Distribution CentersCustomersRaw materials and finished products that flow between Du (UNB)SCM5 / 67 The Logistics Network IIplantswarehousesretailerscustomersInve ntory &warehousing costsTransportationcostTransportationcos tTransportationcostTypical Logistics ConfigurationInventory &war

Warehousing costs (handling, and xed costs)I Handling cost: proportional to the amount of material the ows through the warehouse Fixed Cost: All costs that are not proportional to the amount of material the ows through the warehouse. It is typically proportional to warehouse space size (or warehouse capacity) but in a nonlinear way. 000,20 000 ...

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