Transcription of Supply Chain Management: Logistics Network Design
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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 on the following strategic decisions in terms
Step 3. Data Validation and Model Once the data are collected and cleaned, we need to ensure that the data and model accurately re ect the network design problem. This is typically done by reconstructing the existing network con guration using the model and collected data, and comparing the output of the model to existing data. The purpose is to
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