《供应链系统设计与管理》课程教学课件（讲稿）Lecture 6（Chapter 3）Supply chain Network Designing & Planning

Lecture 6Chapter 3: Supply chainNetwork Designing &PlanningDr.Wang, Fhanggiong2017

Lecture 6 Chapter 3: Supply chain Network Designing & Planning Dr. Wang, Zhangqiong 2017

The SCM Network ~logistics networkWarehousesandSuppliersManufacturersdistributioncentersCustomersManufacturingcostsTransportationcostsMaterial costsTransportationcostsInventory costsFiGURE1.1:Thelogisticsnetwork

2 The SCM Network ~logistics network FIGURE 1.1: The logistics network

Case : The Bis Co.What is Bis's network configuration now?Why Bis plans to modify their supply chainnetwork?Whataretheissuesthat needto beaddressed?Howto solvetheseissues?

3 Case : The Bis Co.  What is Bis’s network configuration now?  Why Bis plans to modify their supply chain network?  What are the issues that need to be addressed?  How to solve these issues?

3.1 Why Network Planning?Find the right balance between inventorytransportation and manufacturing costsMatch supply and demand underuncertainty by positioning and managinginventoryeffectivelyUtilizeresourceseffectivelyby sourcingproducts from the most appropriatemanufacturingfacility

4 3.1 Why Network Planning?  Find the right balance between inventory, transportation and manufacturing costs,  Match supply and demand under uncertainty by positioning and managing inventory effectively,  Utilize resources effectively by sourcing products from the most appropriate manufacturing facility

Three Hierarchical StepsNetworkdesignNumber,locations and size offacilitiesAssignment of retail outlets to warehousesMajorsourcingdecisionsInventorypositioning:IdentifyingstockingpointsFacilitiesthatwillMTS(stock)andkeep inventoryFacilities that will MTO(order)and hence keep no inventoryRelatedtotheinventorymanagement strategiesResourceallocation:production of products at the right facilityplants sourcing strategiesCapacityeachplant5

5 Three Hierarchical Steps  Network design  Number, locations and size of facilities  Assignment of retail outlets to warehouses  Major sourcing decisions  Inventory positioning:  Identifying stocking points  Facilities that will MTS(stock) and keep inventory  Facilities that will MTO(order) and hence keep no inventory  Related to the inventory management strategies  Resource allocation:  production of products at the right facility  plants sourcing strategies  Capacity each plant