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Part III: Advanced Modeling and Expanding to Multiple Echelons
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Part III: Advanced Modeling and Expanding to Multiple Echelons
by John E. Bell, Thomas J. Golds, Chad W. Autry, Jay Jayaraman, Peter Cacioppi, Sar
Learn The Impact of Global Trends (Collection)
About This eBook
Title Page
Copyright Page
Table of Contents
Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain
Copyright Page
Dedication Page
Praise for Supply Chain Network Design
Acknowledgments
About the Authors
Preface
Book Web Site
Part I: Introduction and Basic Building Blocks
1. The Value of Supply Chain Network Design
What Is Supply Chain Network Design and Why Is It Important?
Quantitative Data: Why Does Geography Matter?
Quantitative Data: Why Have Warehouses?
Quantitative Data: Why Have Multiple Plants?
Solving the Quantitative Aspects of the Problem Using Optimization
Data Precision Versus Significance: What Is the Right Level in Modeling?
Nonquantifiable Data: What Other Factors Need to Be Considered?
Nonquantifiable Data: What Are the Organizational Challenges?
Where Are We Going with the Book?
End-of-Chapter Questions
2. Intuition Building with Center of Gravity Models
Problem 1: Physics Weighted-Average Centering
Problem 2: Practical Center of Gravity
Lessons Learned from Center of Gravity Problems
End-of-Chapter Questions
3. Locating Facilities Using a Distance-Based Approach
Retail Case Study: Al’s Athletics
Formal Problem Definition for Locating “P” Facilities
Formulating and Solving the Problem
Hands-On Excel Exercise
Analysis of This Model for Al’s Athletics
Lessons Learned from Locating Facilities with a Distance-Based Approach
End-of-Chapter Questions
4. Alternative Service Levels and Sensitivity Analysis
What Does Service Level Mean?
Supply Chain Design Service Levels
Consumer Products Case Study: Chen’s Cosmetics
Consumer Products Case Study: Chen’s Cosmetics European Warehouse Selections
Mathematical Formulation
Service-Level Constraints
The Importance of Sensitivity Analysis on Any Solution
Lessons Learned from Alternative Service Levels and Sensitivity Analysis Modeling
End-of-Chapter Questions
5. Adding Capacity to the Model
Case Study: Swimming Pool Chemicals
Case Study: Warehouse Capacity Utilization
Case Study: Paint Company and Capacity
Adding Capacity to the Model
Mathematical Formulation
Possible Difficulty with Models That Have Capacity Constraints
How Capacity Constraints Can Change a Model
Lessons Learned for Adding Capacity to Our Models
End-of-Chapter Questions
Part II: Adding Costs to Two-Echelon Supply Chains
6. Adding Outbound Transportation to the Model
Formulating and Solving the Problem
Demand is Expressed in Total, Not Shipment by Shipment
Transportation Costs Per Unit
Determining All the Transportation Costs
Regression Analysis for Building a Rate Matrix
Estimating Multistop Costs
Transportation Case Study
Lessons Learned with Transportation
End-of-Chapter Questions
7. Introducing Facility Fixed and Variable Costs
Mathematical Formulation
Facility Variable Costs
Facility Fixed Costs
Categorizing Fixed and Variable Costs by Analyzing Accounting Data
Lessons Learned from Adding Facility Variable and Fixed Costs
End-of-Chapter Questions
8. Baselines and Optimal Baselines
Actual Baseline
Optimized Baseline
Other Versions of the Baseline
Baseline Case Study—Illinois Quality Parts, Inc.
Lessons Learned from Baseline and Optimized Baseline Modeling
End-of-Chapter Questions
Part III: Advanced Modeling and Expanding to Multiple Echelons
9. Three-Echelon Supply Chain Modeling
JADE’s Corporate Background
Determining Warehouse Locations with Fixed Plants and Customers
The Problem and the Mathematical Formulation
JADE Case Study Continued...
Plant Locations Considering the Source of Raw Material
Linking Locations Together for More Than Three Echelons
Lessons Learned from Three-Echelon Supply Chain Modeling
End-of-Chapter Questions
10. Adding Multiple Products and Multisite Production Sourcing
Why Model Products?
Adding Products to the Model—Mathematical Formulation
Case Study—Value Grocers, Grocery Retailer
Addition of Product Sourcing
Modeling Bills-of-Material (BOMs)
Bills-of-Material Example—Beer Manufacturing Process Modeling
Lessons Learned from Adding Products
End-of-Chapter Questions
11. Multi-Objective Optimization
Lessons Learned with Multi-Objective Optimization
End-of-Chapter Questions
Part IV: How to Get Industrial-Strength Results
12. The Art of Modeling
Understanding the Supply Chain
Start with Small Models and Iterate
Run a Lot of Scenarios—Don’t Be Afraid to Experiment
Don’t Be Afraid of Including Things in the Model That Don’t Exist in the Actual Supply Chain
Models Are Not a Substitute for Due Diligence and Decision Making
Optimization Will Do Anything to Save a Penny
Debugging Models
Fixing Infeasible Models
Fixing Feasible Models
Lessons Learned for the Art of Modeling
End-of-Chapter Questions
13. Data Aggregation in Network Design
Aggregation of Customers
Validating the Customer Aggregation Strategy—National Example
Validating Customer Aggregation—Regional Example
Aggregation of Products
Testing the Product Aggregation Strategy
Aggregation of Sites
Aggregation of Time Periods
Aggregation of Cost Types
Lessons Learned on Aggregation
End-of-Chapter Questions
14. Creating a Group and Running a Project
Typical Steps to Complete a Network Design Study
Setting Up a Modeling Group
Lessons Learned
End-of-Chapter Questions
Part V: Case Study Wrap Up
15. Case Study: JPMS Chemicals Case Study
Indian Chemical Company—Case Study
Single-Sourcing
State-Based Single-Sourcing
Lessons Learned from the Case
End-of-Chapter Questions
Index
FT Press
Global Macrotrends and Their Impact on Supply Chain Management: Strategies for Gaining Competitive Advantage
Copyright Page
Dedication Page
Acknowledgments
About the Authors
Preface
Part I: Global Macrotrends Impacting the Supply Chain Environment
1. Supply Chain Management in the 21st Century
A Note on Futurism
The Underpinnings of Supply Chain Management
What You Will Learn from This Book
Managing the Supply Chain to Mitigate Macrotrend Risks
2. Global Population Growth and Migration
Impacts of Population Change on Demand and Supply
Population Growth Perspectives
Organic Population Growth Issues for Supply Chain Managers
Supply Chain Problems Created by Migration-Based Growth
The Future Supply Chain Manager’s Population-Oriented Agenda
3. Global Connectivity and Socioeconomic Leveling
Is Globalization Real?
Economic Leveling and Connectivity Issues for Future Supply Chain Managers
4. The Changing Physical Environment
The Environment and You, You and the Environment
Environmental Pressures on Supply Chains
Environmental Challenges for Future Supply Chain Managers
5. Geopolitical and Social Systems Disruptions
Commodity Hoarding and Export Restriction: The China Syndrome
Government Risks and Considerations
Tangible and Virtual Intentional Disruptions
Geopolitical Challenges for Future Supply Chain Managers
Part II: Macrotrend Implications for Supply Chain Functionality
6. Implications for Supply Chain Planning: Demand and Supply Uncertainty
How Supply Chain Plans Improve Performance
The Supply Chain Planning Function
Macrotrend Demand/Supply Impacts: Supply Chain Planning Considerations
7. Implications for Sourcing/Procurement: Natural Resource Scarcity
Understanding Resource Scarcity Today and Tomorrow
Natural Resource Attributes and Their Future Implications
The Seven Forces Driving Resource Scarcity
Scarcity Strategies for the Future Procurement/Supply Manager
Sourcing and Procurement Responses to Resource Scarcity Through 2030
8. Implications for Production: Disrupted Process Flows
Manufacturing and the Larger Economy
Manufacturing-Driven Supply Chain Strategies
Manufacturing Strategies for the Future Production Manager
9. Implications for Transportation/Logistics: Congestion and Infrastructure Decay
Friction of Distance
Public-Private Partnerships and Other Solutions
Responding to Congestion, Distance Friction, and an Overwhelmed Infrastructure
Diffusing Congestion with Advanced Technologies
Part III: Macrotrend Risk-Mitigation Strategies
10. Mitigating Supply-Driven Imbalance
Employment Approaches
Conservation Approaches
Resource Scarcity Mitigation Strategies for the Supply Chain
Mitigating Supply-Driven Imbalances
11. Mitigating Demand-Driven Imbalance
Demand Shaping in the Transforming World: Macro and Micro Issues
The Case for Demand/Supply Integration
Implementing DSI to Mitigate Demand-Side Imbalances
Applying the Demand-Imbalance Mitigation Strategies
Index
Financial Times Press
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8. Baselines and Optimal Baselines
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9. Three-Echelon Supply Chain Modeling
Part III: Advanced Modeling and Expanding to Multiple Echelons
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