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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 &warehousing costsProduction/purchase costsDonglei Du (UNB)SCM6 / 67 Key Strategic Decisions in the Logistics Network IAssuming that plants and retailer locations are fixed, weconcentrate

Supply Chain Management: Logistics Network Design Donglei Du (ddu@unb.edu) ... An improvement in service level due to the reduction in average ... whether the supply chain is an e cient channel for the distribution of products. $90 $80 $70 $60 $50 $40 $30 $20 $10 $-02 46 8 10 N u m b e r of Wa r e hous e s Cost (millions $) Tot a l C o s t T r ...

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  Management, Supply, Chain, Improvement, Supply chain management, Supply chain, Logistics

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