Network Design in the Supply Chain

1. The Role of it in Network Design

1.1. It systems help with network design by:

1.1.1. Making the modeling of the network design problems easier

1.1.2. Containing high-performance optimization technologies

1.1.3. Allowing for "what-if" scenarios

1.1.4. Interfacing with planning and operational software

2. Making Network Design Decisions in Practice

2.1. Do not understimate the life span of facilities

2.2. Do not gloss over the curtural implications

2.3. Do not ignore quality of life issues

2.4. Focus on tariffs and tax incentives when locating facilities

3. Network Design Decisions

3.1. Facility role

3.2. Facility location

3.3. Capacity allocation

3.4. Market and supply allocation

4. Factors Influencing Network Design Decisions

4.1. Strategic

4.2. Technological

4.3. Macroeconomic

4.4. Political

4.5. Infrastructure

4.6. Competitive

4.7. Logistics and facility costs

5. Framework for Network Design Decisions

5.1. Define the Supply Chain Strategy Design

5.2. Define Regional facility Configuration

5.3. Select a set of Desirable Potential Sites

5.4. Location Choices

6. Models for Facility Location and Capacity Allocation

6.1. Capacitated Plant location model

6.2. Gravity location models

7. Network Optimization Models

7.1. Its finction is to

7.1.1. Allocating demand ti production facilities

7.1.2. Locating facilities and allocating capacity

7.2. Key costs

7.2.1. Fixed facility cost

7.2.2. Coordination cost

7.2.3. Transportation cost

7.2.4. Inventory cost

7.2.5. Production cost