Reading Bullet Point Assignment

Reading Bullet Point Assignment
Downloaded by Shillin Chen on 3/20/2016. Ohio State University , Keely Croxton, Spring 2016
BUSML 4382: Logistics Analytics Keely Croxton
Ohio State University Spring 2016
Downloaded by Shillin Chen on 3/20/2016. Ohio State University , Keely Croxton, Spring 2016
Downloaded by Shillin Chen on 3/20/2016. Ohio State University , Keely Croxton, Spring 2016
BUSML 4382: Logistics Analytics BUSML 4382
Ohio State University
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BUSML 4382: Logistics Analytics
Table of Contents “Chapter 1: The Value of Supply Chain Network Design” by Watson, Michael; Lewis, Sara; Cacioppi, Peter; Jayaraman, Jay
1
“Chapter 12: The Art of Modeling” by Watson, Michael; Lewis, Sara; Cacioppi, Peter; Jayaraman, Jay
23
“Chapter 13: Data Aggregation in Network Design” by Watson, Michael; Lewis, Sara; Cacioppi, Peter; Jayaraman, Jay
43
Bibliography 67
i
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1 THE VALUE OF SUPPLY CHAIN
NETWORK DESIGN
What Is Supply Chain Network Design and Why Is It Important? A firm’s supply chain allows it to move product from the source to the final point of consumption. Leading firms around the world, from large retailers to high-tech elec- tronics manufacturers, have learned to use their supply chain as a strategic weapon. A supply chain is defined by the suppliers, plants, warehouses, and flows of products from each product’s origin to the final customer. The number and locations of these facilities is a critical factor in the success of any supply chain. In fact, some experts suggest that 800/0 of the costs of the supply chain are locked in with the location of the facilities and the determination of optimal flows of product between them. (This is similar to the notion from manufacturing that you lock in 800/0 of the cost to make a product with its design.) The most successful companies recognize this and place significant emphasis on strategic planning by determining the best facility locations and product flows. The discipline used to determine the optimal location and size of facilities and the flow through the facilities is called supply chain network design.
This book covers the discipline of supply chain network design. Sometimes it is referred to as network modeling because you need to build a mathematical model of the supply chain. This model is then solved using optimization techniques and then analyzed to pick the best solution. Specifically, we will focus on modeling the supply chain to deter- mine the optimal location of facilities (warehouses, plants, lines within the plants, and suppliers) and the best flow of products through this facility network structure.
Here are four examples to illustrate the value of supply chain network design~
• 1
1
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Example