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
A reduction in outbound transportation costs: transportation costs from the warehouse to the customers. An increase in inbound transportation costs: transportation costs from the suppliers and/or manufacturers to the warehouse. In essence, the rm must balance the costs of opening new warehouses with the advantages of being close to the customer.
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