I Decision Classifications Strategic Planning: Decisions that typically involve major capital investments and have a long term effect Determination of the number,location and size of new plants,distribution centers and warehouses Acquisition of new production equipments and the design of working centers within each plant Design of transportation facilities,communications equipments,data processing means,etc
Decision Classifications Strategic Planning: Decisions that typically involve major capital investments and have a long term effect Determination of the number, location and size of new plants, distribution centers and warehouses Acquisition of new production equipments and the design of working centers within each plant Design of transportation facilities, communications equipments, data processing means, etc
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 would like to find a minimal-annual- cost configuration of the distribution network that satisfies product demands at specified customer 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 would like to find a minimal-annualcost configuration of the distribution network that satisfies product demands at specified customer service levels