Decision Classifications Tactical Planning: Effective allocation of manufacturing and distribution resources over a period of several months ■Work-force size ■Inventory policies Definition of the distribution channels Selection of transportation and trans-shipment alternatives
Decision Classifications Tactical Planning: Effective allocation of manufacturing and distribution resources over a period of several months Work-force size Inventory policies Definition of the distribution channels Selection of transportation and trans-shipment alternatives
Decision Classifications Operational Control: Includes day-to-day operational decisions The assignment of customer orders to individual machines -Dispatching,expediting and processing orders Vehicle scheduling
Decision Classifications Operational Control: Includes day-to-day operational decisions The assignment of customer orders to individual machines Dispatching, expediting and processing orders Vehicle scheduling
Network Design:Key Issues Pick the optimal number,location,and size of warehouses and/or plants Determine optimal sourcing strategy Which plant/vendor should produce which product Determine best distribution channels Which warehouses should serve which customers
Network Design: Key Issues Pick the optimal number, location, and size of warehouses and/or plants Determine optimal sourcing strategy Which plant/vendor should produce which product Determine best distribution channels Which warehouses should serve which customers
Network Design:Key Issues The objective is to balance service level against Production/purchasing costs Inventory carrying costs Facility costs (handling and fixed costs) Transportation costs That is,we have to find a minimal-annual-cost configuration of the distribution network that satisfies customer demands at specified service levels
Network Design: Key Issues The objective is to balance service level against Production/ purchasing costs Inventory carrying costs Facility costs (handling and fixed costs) Transportation costs That is, we have to find a minimal-annual-cost configuration of the distribution network that satisfies customer demands at specified service levels
Network Design Tools: Major Components Mapping Mapping allows you to visualize your supply chain and solutions Mapping the solutions allows you to better understand different scenarios Color coding,sizing,and utilization indicators allow for further analysis Data Data specifies the costs of your supply chain The baseline cost data should match your accounting data The output data allows you to quantify changes to the supply chain Engine Optimization Techniques
Network Design Tools: Major Components Mapping Mapping allows you to visualize your supply chain and solutions Mapping the solutions allows you to better understand different scenarios Color coding, sizing, and utilization indicators allow for further analysis Data Data specifies the costs of your supply chain The baseline cost data should match your accounting data The output data allows you to quantify changes to the supply chain Engine Optimization Techniques