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PERTEMUAN 4 NETWORK DESIGN IN THE SUPPLY CHAIN
Learning Objectives
After following this class, you will be able to:
Facility
Role
Facility
Locatio
n
Capacit
y
Allocati
on
SC
Network
Design
Decision
s
Market
&
Supply
Allocati
on
How much
capacity
should be
allocated
to each
facility?
What
markets
should each
facility
serve?
Which
supply
sources
Network 1
Network 2
Lebih besar
Lebih kecil
Lebih sulit
Lebih mudah
Lebih banyak
Lebih sedikit
Lebih kecil
Lebih besar
Lebih dekat
Lebih jauh
Fixed cost
Lebih besar
Lebih kecil
Waktu respon
Lebih cepat
Lebih lambat
Biaya inventory
Lebih tinggi
Lebih rendah
Risk Pooling
Dasar pemikiran: apabila demand suatu
produk antar wilayah bersifat independen
maka agregasi kebutuhan dari sejumlah
wilayah akan mengakibatkan penurunan
tingkat ketidakpastian.
Sentralisasi
menciptakan
penurunan risiko
sehingga akan
mengurangi kebutuhan
safety stock
(dibandingkan dengan
desentralisasi).
Sentralisasi
Desentralisasi
Sentralisasi
inventory
terpusat di satu
tempat untuk
melayani semua
wilayah
permintaan
Desentralisasi
inventory ada di
masing-masing
wilayah
permintaan
Strategic factors
Infrastructure factors
Technological factors
Competitive factors
Macroeconomic factors
Customer response
Political factors
Strategic Factors
Competitiv
e Strategy
Network
Design
Decisions
Technological Factors
High Fixed
Cost
Technology fixed
cost; if production
technology displays
significant
economies of scale,
a few high-capacity
locations are most
effective.
Low Fixed
Cost
If facilities have
lower fixed costs,
many local facilities
are preferred
because this helps
to achieve lower
transportation
costs.
Flexibility
Flexibility degree
of consolidation; if
technology is
flexible, it becomes
easier to
consolidate
manufacturing in
few large facilities
vice versa.
Macroeconomic Factors
01
Tariffs
Refer to any duties
that must be paid
when products and/or
equipment are
moved accross
international,
state/province, or city
boundaries.
02
Tax
TaxIncentives
incentives are a
reduction in tariffs
or taxes that
countries, states,
and cities often
provide to
encourage firms to
locate their
facilities in specific
areas.
03
Exchange Rate
When designing SC
networks, companies
must build
appropriate flexibility
to help counter
fluctuations in
exchange rates and
demand accross
different countries.
Political Factors
Infrastructure Factors
Competitive Factors
Companies
must consider
competitors
strategy, size,
and location
when designing
their supply
chain networks.
A fundamental
decision firms
make is
whether to
locate their
facilities close
to competitors
or far from
them.
The form of
competition and
factors such as
raw material or
labor
availability
influence this
decision.
01
02
If a firm is
delivering its
product to
customers, use of
a rapid means of
transportation
allows it to build
fewer facilities and
still provide a
short response
time.
2
3
Is used to find the location that minimizes the cost of transporting raw materials from the points of
supply and transporting finished goods to the customers.
Let:
Xn, Yn : coordinate location of either a market or a supply point
Cn
: cost of shipping one unit for one km from or to location n the facility to be located
Dn
: Quantity to be shipped from or to location n to the facility
dn
: the distance to or from facility n to the facility
The distance dn is approximated as follows: (If (x,y) is the coordinate of the location of the facility)
dn ( x xn) ( y yn)
Type of Distance
Manhattan
Euclidean
Distance
Minkowski
Chebyshev
Mahalanobis
If there are k supply and market points then total cost of transportation to and from the facility is:
TC
dnDnCn
n 1
The location that minimizes the TC can be obtained with the following steps:
1. For each supply or market position n, calculate dn as above
2. Obtain a new location (x,y) where:
k
x'
1.
DnCnxn
dn
n 1
y'
DnCnyn
dn
n 1
k
DnCn
DnCn
3. If the new location is almost
the
same
as
(x,y)
then
stop,
otherwise
set (x,y) = (x,y) and go to step
dn
n 1 dn
n 1
Yn
dn
Dn
Cn
5.1
100
1.5
7.2
700
1.8
12
14.4
200
2.5
12
13.0
150
1.9
10.3
400
1.7
15
15.3
200
2.1
Yn
dn
Dn
Cn
DnCnXn/
dn
5.1
100
1.5
147.1
29.4
29.4
7.2
700
1.8
698.9
1048.4
174.7
12
14.4
200
2.5
277.4
416.0
34.7
12
13.0
150
1.9
263.1
109.6
21.9
10.3
400
1.7
330.2
594.4
66.0
15
15.3
200
2.1
411.8
82.4
27.5
2128.5
2280.2
354.2
Total
DnCnYn/
dn
DnCn/
dn
X=2128.5/354.2=6.0
Y=2280.2/354.2=6.4
Yn
dn
Dn
Cn
DnCnXn/
dn
5.5
100
1.5
136.6
27.3
27.3
2.0
700
1.8
2471.1
3706.6
617.8
12
5.9
200
2.5
672.7
1009.0
84.1
12
6.2
150
1.9
555.1
231.3
46.3
2.8
400
1.7
1220.5
2197.0
244.1
15
9.6
200
2.1
654.8
131.0
43.7
5710.8
7302.1
1063.2
Total
DnCnYn/
dn
DnCn/d
n
X=5710.8/1063.2=5.4
Y=7302.1/1032.2=6.9
Yn
dn
Dn
Cn
DnCnXn/
dn
5.9
100
1.5
126.8
25.4
25.4
1.7
700
1.8
3028.2
4542.4
757.1
12
5.7
200
2.5
698.7
1048.1
87.3
12
6.9
150
1.9
498.0
207.5
41.5
2.1
400
1.7
1590.5
2862.8
318.1
15
10.4
200
2.1
608.0
121.6
40.5
6550.2
8807.8
1269.9
Total
DnCnYn/
dn
DnCn/d
n
X=6550.2/1269.9=5.1
Y=8807.8/1269.9=6.9
Yn
dn
Dn
Cn
DnCnXn/
dn
5.9
100
1.5
127.0
25.4
25.4
1.5
700
1.8
3360.0
5040.0
840.0
12
5.8
200
2.5
687.5
1031.3
85.9
12
7.1
150
1.9
484.4
201.8
40.4
2.1
400
1.7
1611.8
2901.2
322.4
15
10.5
200
2.1
597.3
119.5
39.8
6868.0
9319.1
1353.9
Total
DnCnYn/
dn
DnCn/d
n
X=6868.0/1353.9=5.1
Y=6868.0/1353.9=6.9
Final Position:
Warehouse in (5.1,
6.9)
Warehouse
satisfy demand in
with a fixed cost. The production and delivery costs to from each
factory to each demand point is known.
The problem to solve is: Which factory to open and from which factory
each market demand is fulfilled?
Suppose:
i
= capacity of factory i
fi
cij = cost of producing and delivering one unit of product from factory i to demand area j
yi
Minimise
fi yi cij xij
i
xij D j
i
xij Ki yi
j
xij 0; yi (0,1)
Cell Formula
Equation
Copied To
B28
=B9-SUM(B14:B18)
5.1
B28:F28
B22
=G14*H4+H14*J4SUM(B14:F14)
5.2
B22:B26
B31
=SUMPRODUCT(B14:F18;B4:F8
)+
SUMPRODUCT(G14:G18;G4:G8)
+
SUMPRODUCT(H14:H18;I4:I8)
Objective
Function
x
i 1
ij
x
j 1
ij
i 1 j 1
D j j
K i yi i
yi 0,1
xij 0