Distribution Network Design 1g1f8
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distribution networks design
Presented by: Shaghayegh Parhizi Zeinab Bagherpour
Distribution (5) Distribution definition : Distribution means , making product available in the markets. In the other words , distribution means to reach the appropriate product to the appropriate place , in the appropriate time. The two general aspects of product availability : ¾ Preparing product for sailing to the end customer ¾ Making product available via taking possession of it by the end customer
Distribution (5) ¾
¾ 1. 2. 3.
Distribution channel definition : It is a way that product and its ownership rights flow through it. Distribution channels are mostly chains of different organizations that except the main distributor and the end customer are nominated “wholesalers”. Activities in a distribution channel : Activities are related to changing ownership Activities are related to physical supply of product Lateral activities
Distribution (5) physical distribution : formal management of physical distribution is analyzing , programming and controlling a level of product availability that is proportional with demands of the market area and resources of the firm. The important points in distribution decisions : 1.Product inventory 2. Facilities 3. Relationships 4. Transportation 5. The size of unit load
Distribution (5) ¾
The difference between physical distribution & transportation
Factors influencing distribution network design (3) Response time „ Product variety „ Product availability „ Customer experience „ Order visibility „ Return ability „
Literature review
(4)
Literature review
(4)
Tow key dicisions ¾
Will product be delivered to the customer location or picked up from a preordained site ?
¾
Will product flow through an intermediary?
Design options for a distribution network (3) „ „ „ „ „ „
Manufacturer storage with direct shipping Manufacturer storage with direct shipping and in-transit merge Distributor storage with package carrier delivery Distributor storage with last mile delivery Manufacturer/ Distributor storage with customer pick up Retail storage with customer pick up
Manufacturer storage with direct shipping (3) manufacturer
retailer
customers
Product flow Information flow
Performance characteristics of Manufacturer storage with direct shipping (3) Cost factor
Performance
Inventory
¾Lower
Transportation
higher transportation cost because of increased distance and disaggregate shipping
cost because of aggregation . Benefits of aggregation are highest for low-demand , high value items. ¾Benefits are very large if product customization can be postpone at the manufacturer
Performance characteristics of Manufacturer storage with direct shipping (3) Cost factor Performance Facilities & handling
¾Lower
facility cost because of aggregation . Some saving on handling costs if manufacturer can manage small shipments or ship from production line
Information
Significant investment in information infrastructure to integrate manufacturer & retailer
Performance characteristics of Manufacturer storage with direct shipping (3) Service factor Performance Response time
Product variety
¾High
response time of between 1 to 2 weeks because of increased distance and two stages for order processing. ¾ Response time may vary by product , thus complicating receiving . ¾Easy to provide a very high level of variety
Performance characteristics of Manufacturer storage with direct shipping (3) Service factor
Performance
Product availability
¾Easy
Customer experience
¾Good
to provide a high level of Product availability because of aggregation at manufacturer . in of home delivery but can suffer if order from several manufacturers is sent as partial shipments
Performance characteristics of Manufacturer storage with direct shipping (3) Service factor
Performance
Order visibility
¾More
Returnability
¾Expensive
difficult but also more important from a customer service perspective & difficult to implement
Manufacturer storage with direct shipping and in-transit merge (3)
Factories
Retailer
In – Transit merge by carrier
Customer
Product flow Information flow
Performance characteristics of in-transit merge (3) Cost factor
Performance
Inventory
¾Similar
Transportation
¾Somewhat
Facilities & handling
¾Handling
Information
¾Investment
to drop-shipping
lower transportation cost than drop-shipping
cost higher than dropshipping at carrier ¾Receiving cost lower at customer is somewhat higher than for drop-shipping
Performance characteristics of in-transit merge (3) Service factor Response time Product variety Product availability
Performance ¾Similar to drop-shipping may be marginally higher ¾Similar to drop-shipping ¾Similar
to drop-shipping
Performance characteristics of in-transit merge (3) Service factor Customer experience
Performance ¾Better than drop-shipping because a single delivery has to be received.
Order visibility
¾Similar
Returnability
Similar to drop-shipping
to drop-shipping
Distributor storage with package carrier delivery (3) Factories
Warehouse storage by distribution / retailer
Customer
Product flow Information flow
Performance characteristics of Distributor storage with package carrier delivery (3) Cost factor
Performance
Inventory
¾Higher
Transportation
than manufacturer storage . Difference is not large for faster moving items ¾Lower than manufacturer storage . Reduction is higher for faster moving
Facilities & handling
¾Somewhat
higher than manufacturer storage . The difference can be large for slow- moving items .
Information
¾Simpler
infrastructure compare to manufacturer storage .
Performance characteristics of Distributor storage with package carrier delivery (3) Service factor
Performance
Response time
¾Faster
than manufacturer storage
Product variety
¾Lower
than manufacturer storage
Product availability
¾Higher
cost to provide the seem level of availability as manufacturer storage
Performance characteristics of Distributor storage with package carrier delivery (3) Service factor
Performance
Customer experience
¾Better
Order visibility
¾Easier
than manufacturer storage .
Returnability
¾Easier
than manufacturer storage .
than manufacturer storage with drop-shipping.
Distributor storage with last mile delivery (3) Factories
distribution / retailer warehouse
Product flow Information flow
Customer
Distributor storage with last mile delivery (3) Cost factor
Performance
Inventory
¾Higher
Transportation
¾Very
Facilities & handling
Information
than distributor with package carrier delivery.
high cost given minimal scale economies . Higher than any other distribution option . ¾Facility costs higher than manufacturer storage or distribution storage with package carrier delivery , but lower than a chain of retail stores . ¾Similar to distributor with package carrier delivery
Distributor storage with last mile delivery (3) Service factor
Performance
Response time
¾Very
Product variety
¾Somewhat
Product availability
¾More
quick. Same day to next day delivery less than distributor storage with package carrier delivery but larger than retail stores expensive to provide availability than any other option except retail stores
Distributor storage with last mile delivery (3) Service factor
Performance
Customer experience
¾Very
Order traceability
¾Less
Returnability
¾Easier
good particularly for bulky
items of and issue and easier to implement than manufacturer storage or distributor storage with package carrier delivery to implement than other options. Harder and more expensive than a retail network
Manufacturer/ Distributor storage with customer pick up (3)
Factories Cross Dock DC
Retailer
Pick up site
Customer
Customer flow
Product flow
Information flow
Manufacturer/ Distributor storage with customer pick up (3) Cost factor
Performance
Inventory
¾Can
match any other option depending on the location of inventory
Transportation
¾Lower
than the use of package carrier , specially if using delivery network
Facilities & handling
¾Facility
costs can be very high if a new facilities have to built ¾Costs are lower if existing facilities are used ¾The increase in handling cost at the pick up site can be significant
Information
¾significant
required
investment infrastructure
Manufacturer/ Distributor storage with customer pick up (3) Service factor
Performance
Response time
¾Similar
Product availability
¾Similar
to package carrier delivery with manufacturer or distributor storage. Same day delivery possible for items stored locally at pick up site Product variety ¾Similar to other manufacturer or distributor storage options to other manufacturer or distributor storage options
Manufacturer/ Distributor storage with customer pick up (3) Service factor
Performance
Customer experience
¾Lower
Returnability
¾Somewhat
than other options because of the lack of home delivery ¾In areas with high density of population loss of convenience may be small Order visibility ¾Difficult but essential easier given that pick up location can handle returns .
Retail storage with customer pick up (3) Cost factor
Performance
Inventory
¾Higher
than all other options
Transportation
¾Lower
than all other options
Facilities & handling
¾Higher
than all other options ¾The increase in handling cost at the pick up site can be significant for online and phone orders
Information
¾some
investment in infrastructure required for online and phone orders
Retail storage with customer pick up (3) Service factor Performance Response time ¾Very quick. Same day pick up possible for items stored locally at pick up site Product variety ¾Lower than all other options Product availability
¾More
expensive to provide than all other options
Retail storage with customer pick up (3) Service factor
Performance
Customer experience
¾Related
Order traceability
to whether shopping is viewed positive or negative experience by Customer ¾Trivial for in-store orders difficult , but essential , for online and phone orders
Returnability
¾Easier
than other options given that pick up location can handle returns
Selecting a distribution network design (3) Retailer storage (customer pick up)
Man.. Storage (direct shipping)
Man Storage ( in – transit merge )
Dis.. Storage (package carrier Delivery)
Dis.. Storage (last mile delivery)
Man.. Storage (pick up)
Res Time
1
4
4
3
2
4
Pro var
4
1
1
2
3
1
Pro avail
4
1
1
2
3
1
Cust exp
5
4
3
2
1
5
Ord visi
1
5
4
3
2
6
Return
1
5
5
4
3
2
Invent
4
1
1
2
3
1
Transpo
1
4
3
2
5
1
Faci&ha
6
1
2
3
4
5
info
1
4
4
3
2
5
CASE 1: A dynamic distribution model for combat logistics (2)
Traditional combat service .
CASE 1: A dynamic distribution model for combat logistics (2)
Combat service for OMFTS.
Problem definition (2) Indices & Sets : i; j : nodes or locations (i = 0 is the sea base)
k : commodities t : time periods I : set of all nodes Is : set of supply nodes Ic : set of combat nodes Isl : set of land-based supply nodes Icl :set of land-based combat nodes Il : set of land-based nodes Ib : set of beach nodes accessible by watercraft Ii : set of inland (not beach) nodes K : set of commodities T : set of time periods
Problem definition (2) Data ws : weight of a unit wc : weight of a combat unit sij : distance from node i to node j bit maximum total inventory that can be held at node i in period t Djkt : demand for commodity k at node j in period t N : maximum number of units La : available air lift in a period (in lb mile) Ls : available ship-shore lift in a period (in lb mile) Tijt : indicates movement of a combat unit from i to j in period t M : a large number
Problem definition (2) Decision variables : Xijt : equals 1 if a unit moves from node i to node j in period t, and 0 otherwise Iikt : inventory of commodity k held at node i in period t Yijkt : quantity of commodity k shipped from node i to j in period t
Problem formulation (2) Min
∑∑∑
i∈ I 1 k ∈ K t ∈ T
I ikt + w s
i ∈ IS 1 j ∈ I s 1 t ∈ T
Iijk + ∑YJIKT − ∑Yijkt − Dikt = Iik,t +1 j∈I
j∈I
Iijk + ∑YJIKT − ∑Yijkt = Iik,t +1 j∈Is
j∈I
∑ ∑ ∑
X
ijt
∀i ∈Ic1, k,t
∀i ∈ Is1, k,t
Problem formulation (2)
∑X −∑X jit
j∈Is
∑Y
k∈K
ijkt
j∈Is
ij,t+1
=0
−M (Xiit + Xijt) ≤ 0
∑∑Y j∈Ic k∈K
ijkt
− MXiit ≤ 0
∀i∈Is1,t, ∀i ∈Is, j ∈Is,t,
∀i ∈Is1,t,
Problem formulation (2)
∑I
k∈K
ikt
−M
j∈ I s 1
∑Y j∈ I 1
ijk , t + 1
∑ ∑Y j∈ I i k ∈ K
∑X
ojkt
ijt
≤0
− I ikt ≤ 0
∀ i ∈ I s1 , t ,
∀ i ∈ I s 1, k , t
S o j + Wc ∑ ∑ Tijt S ij ≤ La j ∈ I 1 i∈ I 1
∀t ,
Problem formulation (2)
∑ ∑Y j ∈I b k ∈K
∑
k∈K
S + WCToj1Soj + ∑ ∑ Yojk1Soj + Wc ∑ Ti j1So j ≤ LA + Ls
ojk 1 oj
I ikt − b it ≤ 0
Y i jkt , I ikt ≥ 0
j ∈I 1 k ∈K
i∈ I 1
∀ i ∈ I c1 ,
∀ i, j, k , t
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
The proposed approach involves five steps: 1. The definition of the product-markets, sourcing context and planning horizon. 2. The definition of product families and the elaboration of the manufacturing-storage activities process graph. 3. The definition of potential network resources (facilities location, layouts, technologies and capacity options) and of technology dependent recipes for production activities. 4. The definition of the revenues and costs associated to the network design and activity decisions. 5. The optimal mapping of the process graph onto the potential network resources.
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
markets : ¾ the spot market ¾ large retailers ¾industrial customers Source: ¾ Producers have little control over their supply of raw material.
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
Model ¾ ¾ ¾ ¾
Modeling the supply market Modeling production-distribution facility layouts and capacity options Modeling flows and inventories Objective function
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1) MAXIMIZATION
∑e
o∈O
Oo
[(1 − Zo ) M
+ o
− o
−M ]
subject to „ Supply market constraints (1). Facility layout, space and exclusive options constraints (5), (6) and (7). „ Seasonal capacity option usage constraints (8). „ Production activities flow equilibrium constraints (9) and (10). „ Storage activities inventory ing constraints (11) and (12). „ Production and storage capacity constraints (14), (15) and (16). „ Sales market constraints (17) and (18). „ Facilities total cost and revenue definitions (19),(20) and (21).
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
References 1.Deg logistics networks in divergent process industries:A methodology and its application to the lumber industry; Didier Vila, Alain Martel, Robert Beauregarda;(Int. J. Production Economics 102 (2006) 358–378) 2.A dynamic distribution model for combat logistics,Kevin R. Gue,Computers & Operations Research 30 (2003) 367–381
3.Supply chain management,Stratrgy, Planning,Operation;SUNIL CHOPRA, PETER MEINDL
ﺭﺿﺎ ﺯﻧﺠﻴﺮﺍﻧﻲ ﻓﺮﺍﻫﺎﻧﻲ ﻭ،“”ﻃﺒﻘﻪ ﺑﻨﺪﻱ ﻣﺴﺎﺋﻞ ﺗﻮﺯﻳﻊ ﺩﺭ ﻣﺪﻳﺮﻳﺖ ﺯﻧﺠﻴﺮﻩ ﺗﺎﻣﻴﻦ.4 (ﻣﻬﺴﺎ ﺍﻟﻬﻲﭘﻨﺎﻩ )ﺍﻭﻟﻴﻦ ﻛﻨﻔﺮﺍﻧﺲ ﻣﻠﻲ ﻟﺠﺴﺘﻴﻚ ﻭ ﺯﻧﺠﻴﺮﻩﺗﺎﻣﻴﻦ اﺣﻤﺪ اﺧﻮﯼ، (ﻣﺪﻳﺮﻳﺖ ﺗﻮزﻳﻊ) ﻋﻠﻤﯽ و ﻋﻤﻠﯽ.5
Presented by: Shaghayegh Parhizi Zeinab Bagherpour
Distribution (5) Distribution definition : Distribution means , making product available in the markets. In the other words , distribution means to reach the appropriate product to the appropriate place , in the appropriate time. The two general aspects of product availability : ¾ Preparing product for sailing to the end customer ¾ Making product available via taking possession of it by the end customer
Distribution (5) ¾
¾ 1. 2. 3.
Distribution channel definition : It is a way that product and its ownership rights flow through it. Distribution channels are mostly chains of different organizations that except the main distributor and the end customer are nominated “wholesalers”. Activities in a distribution channel : Activities are related to changing ownership Activities are related to physical supply of product Lateral activities
Distribution (5) physical distribution : formal management of physical distribution is analyzing , programming and controlling a level of product availability that is proportional with demands of the market area and resources of the firm. The important points in distribution decisions : 1.Product inventory 2. Facilities 3. Relationships 4. Transportation 5. The size of unit load
Distribution (5) ¾
The difference between physical distribution & transportation
Factors influencing distribution network design (3) Response time „ Product variety „ Product availability „ Customer experience „ Order visibility „ Return ability „
Literature review
(4)
Literature review
(4)
Tow key dicisions ¾
Will product be delivered to the customer location or picked up from a preordained site ?
¾
Will product flow through an intermediary?
Design options for a distribution network (3) „ „ „ „ „ „
Manufacturer storage with direct shipping Manufacturer storage with direct shipping and in-transit merge Distributor storage with package carrier delivery Distributor storage with last mile delivery Manufacturer/ Distributor storage with customer pick up Retail storage with customer pick up
Manufacturer storage with direct shipping (3) manufacturer
retailer
customers
Product flow Information flow
Performance characteristics of Manufacturer storage with direct shipping (3) Cost factor
Performance
Inventory
¾Lower
Transportation
higher transportation cost because of increased distance and disaggregate shipping
cost because of aggregation . Benefits of aggregation are highest for low-demand , high value items. ¾Benefits are very large if product customization can be postpone at the manufacturer
Performance characteristics of Manufacturer storage with direct shipping (3) Cost factor Performance Facilities & handling
¾Lower
facility cost because of aggregation . Some saving on handling costs if manufacturer can manage small shipments or ship from production line
Information
Significant investment in information infrastructure to integrate manufacturer & retailer
Performance characteristics of Manufacturer storage with direct shipping (3) Service factor Performance Response time
Product variety
¾High
response time of between 1 to 2 weeks because of increased distance and two stages for order processing. ¾ Response time may vary by product , thus complicating receiving . ¾Easy to provide a very high level of variety
Performance characteristics of Manufacturer storage with direct shipping (3) Service factor
Performance
Product availability
¾Easy
Customer experience
¾Good
to provide a high level of Product availability because of aggregation at manufacturer . in of home delivery but can suffer if order from several manufacturers is sent as partial shipments
Performance characteristics of Manufacturer storage with direct shipping (3) Service factor
Performance
Order visibility
¾More
Returnability
¾Expensive
difficult but also more important from a customer service perspective & difficult to implement
Manufacturer storage with direct shipping and in-transit merge (3)
Factories
Retailer
In – Transit merge by carrier
Customer
Product flow Information flow
Performance characteristics of in-transit merge (3) Cost factor
Performance
Inventory
¾Similar
Transportation
¾Somewhat
Facilities & handling
¾Handling
Information
¾Investment
to drop-shipping
lower transportation cost than drop-shipping
cost higher than dropshipping at carrier ¾Receiving cost lower at customer is somewhat higher than for drop-shipping
Performance characteristics of in-transit merge (3) Service factor Response time Product variety Product availability
Performance ¾Similar to drop-shipping may be marginally higher ¾Similar to drop-shipping ¾Similar
to drop-shipping
Performance characteristics of in-transit merge (3) Service factor Customer experience
Performance ¾Better than drop-shipping because a single delivery has to be received.
Order visibility
¾Similar
Returnability
Similar to drop-shipping
to drop-shipping
Distributor storage with package carrier delivery (3) Factories
Warehouse storage by distribution / retailer
Customer
Product flow Information flow
Performance characteristics of Distributor storage with package carrier delivery (3) Cost factor
Performance
Inventory
¾Higher
Transportation
than manufacturer storage . Difference is not large for faster moving items ¾Lower than manufacturer storage . Reduction is higher for faster moving
Facilities & handling
¾Somewhat
higher than manufacturer storage . The difference can be large for slow- moving items .
Information
¾Simpler
infrastructure compare to manufacturer storage .
Performance characteristics of Distributor storage with package carrier delivery (3) Service factor
Performance
Response time
¾Faster
than manufacturer storage
Product variety
¾Lower
than manufacturer storage
Product availability
¾Higher
cost to provide the seem level of availability as manufacturer storage
Performance characteristics of Distributor storage with package carrier delivery (3) Service factor
Performance
Customer experience
¾Better
Order visibility
¾Easier
than manufacturer storage .
Returnability
¾Easier
than manufacturer storage .
than manufacturer storage with drop-shipping.
Distributor storage with last mile delivery (3) Factories
distribution / retailer warehouse
Product flow Information flow
Customer
Distributor storage with last mile delivery (3) Cost factor
Performance
Inventory
¾Higher
Transportation
¾Very
Facilities & handling
Information
than distributor with package carrier delivery.
high cost given minimal scale economies . Higher than any other distribution option . ¾Facility costs higher than manufacturer storage or distribution storage with package carrier delivery , but lower than a chain of retail stores . ¾Similar to distributor with package carrier delivery
Distributor storage with last mile delivery (3) Service factor
Performance
Response time
¾Very
Product variety
¾Somewhat
Product availability
¾More
quick. Same day to next day delivery less than distributor storage with package carrier delivery but larger than retail stores expensive to provide availability than any other option except retail stores
Distributor storage with last mile delivery (3) Service factor
Performance
Customer experience
¾Very
Order traceability
¾Less
Returnability
¾Easier
good particularly for bulky
items of and issue and easier to implement than manufacturer storage or distributor storage with package carrier delivery to implement than other options. Harder and more expensive than a retail network
Manufacturer/ Distributor storage with customer pick up (3)
Factories Cross Dock DC
Retailer
Pick up site
Customer
Customer flow
Product flow
Information flow
Manufacturer/ Distributor storage with customer pick up (3) Cost factor
Performance
Inventory
¾Can
match any other option depending on the location of inventory
Transportation
¾Lower
than the use of package carrier , specially if using delivery network
Facilities & handling
¾Facility
costs can be very high if a new facilities have to built ¾Costs are lower if existing facilities are used ¾The increase in handling cost at the pick up site can be significant
Information
¾significant
required
investment infrastructure
Manufacturer/ Distributor storage with customer pick up (3) Service factor
Performance
Response time
¾Similar
Product availability
¾Similar
to package carrier delivery with manufacturer or distributor storage. Same day delivery possible for items stored locally at pick up site Product variety ¾Similar to other manufacturer or distributor storage options to other manufacturer or distributor storage options
Manufacturer/ Distributor storage with customer pick up (3) Service factor
Performance
Customer experience
¾Lower
Returnability
¾Somewhat
than other options because of the lack of home delivery ¾In areas with high density of population loss of convenience may be small Order visibility ¾Difficult but essential easier given that pick up location can handle returns .
Retail storage with customer pick up (3) Cost factor
Performance
Inventory
¾Higher
than all other options
Transportation
¾Lower
than all other options
Facilities & handling
¾Higher
than all other options ¾The increase in handling cost at the pick up site can be significant for online and phone orders
Information
¾some
investment in infrastructure required for online and phone orders
Retail storage with customer pick up (3) Service factor Performance Response time ¾Very quick. Same day pick up possible for items stored locally at pick up site Product variety ¾Lower than all other options Product availability
¾More
expensive to provide than all other options
Retail storage with customer pick up (3) Service factor
Performance
Customer experience
¾Related
Order traceability
to whether shopping is viewed positive or negative experience by Customer ¾Trivial for in-store orders difficult , but essential , for online and phone orders
Returnability
¾Easier
than other options given that pick up location can handle returns
Selecting a distribution network design (3) Retailer storage (customer pick up)
Man.. Storage (direct shipping)
Man Storage ( in – transit merge )
Dis.. Storage (package carrier Delivery)
Dis.. Storage (last mile delivery)
Man.. Storage (pick up)
Res Time
1
4
4
3
2
4
Pro var
4
1
1
2
3
1
Pro avail
4
1
1
2
3
1
Cust exp
5
4
3
2
1
5
Ord visi
1
5
4
3
2
6
Return
1
5
5
4
3
2
Invent
4
1
1
2
3
1
Transpo
1
4
3
2
5
1
Faci&ha
6
1
2
3
4
5
info
1
4
4
3
2
5
CASE 1: A dynamic distribution model for combat logistics (2)
Traditional combat service .
CASE 1: A dynamic distribution model for combat logistics (2)
Combat service for OMFTS.
Problem definition (2) Indices & Sets : i; j : nodes or locations (i = 0 is the sea base)
k : commodities t : time periods I : set of all nodes Is : set of supply nodes Ic : set of combat nodes Isl : set of land-based supply nodes Icl :set of land-based combat nodes Il : set of land-based nodes Ib : set of beach nodes accessible by watercraft Ii : set of inland (not beach) nodes K : set of commodities T : set of time periods
Problem definition (2) Data ws : weight of a unit wc : weight of a combat unit sij : distance from node i to node j bit maximum total inventory that can be held at node i in period t Djkt : demand for commodity k at node j in period t N : maximum number of units La : available air lift in a period (in lb mile) Ls : available ship-shore lift in a period (in lb mile) Tijt : indicates movement of a combat unit from i to j in period t M : a large number
Problem definition (2) Decision variables : Xijt : equals 1 if a unit moves from node i to node j in period t, and 0 otherwise Iikt : inventory of commodity k held at node i in period t Yijkt : quantity of commodity k shipped from node i to j in period t
Problem formulation (2) Min
∑∑∑
i∈ I 1 k ∈ K t ∈ T
I ikt + w s
i ∈ IS 1 j ∈ I s 1 t ∈ T
Iijk + ∑YJIKT − ∑Yijkt − Dikt = Iik,t +1 j∈I
j∈I
Iijk + ∑YJIKT − ∑Yijkt = Iik,t +1 j∈Is
j∈I
∑ ∑ ∑
X
ijt
∀i ∈Ic1, k,t
∀i ∈ Is1, k,t
Problem formulation (2)
∑X −∑X jit
j∈Is
∑Y
k∈K
ijkt
j∈Is
ij,t+1
=0
−M (Xiit + Xijt) ≤ 0
∑∑Y j∈Ic k∈K
ijkt
− MXiit ≤ 0
∀i∈Is1,t, ∀i ∈Is, j ∈Is,t,
∀i ∈Is1,t,
Problem formulation (2)
∑I
k∈K
ikt
−M
j∈ I s 1
∑Y j∈ I 1
ijk , t + 1
∑ ∑Y j∈ I i k ∈ K
∑X
ojkt
ijt
≤0
− I ikt ≤ 0
∀ i ∈ I s1 , t ,
∀ i ∈ I s 1, k , t
S o j + Wc ∑ ∑ Tijt S ij ≤ La j ∈ I 1 i∈ I 1
∀t ,
Problem formulation (2)
∑ ∑Y j ∈I b k ∈K
∑
k∈K
S + WCToj1Soj + ∑ ∑ Yojk1Soj + Wc ∑ Ti j1So j ≤ LA + Ls
ojk 1 oj
I ikt − b it ≤ 0
Y i jkt , I ikt ≥ 0
j ∈I 1 k ∈K
i∈ I 1
∀ i ∈ I c1 ,
∀ i, j, k , t
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
The proposed approach involves five steps: 1. The definition of the product-markets, sourcing context and planning horizon. 2. The definition of product families and the elaboration of the manufacturing-storage activities process graph. 3. The definition of potential network resources (facilities location, layouts, technologies and capacity options) and of technology dependent recipes for production activities. 4. The definition of the revenues and costs associated to the network design and activity decisions. 5. The optimal mapping of the process graph onto the potential network resources.
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
markets : ¾ the spot market ¾ large retailers ¾industrial customers Source: ¾ Producers have little control over their supply of raw material.
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
Model ¾ ¾ ¾ ¾
Modeling the supply market Modeling production-distribution facility layouts and capacity options Modeling flows and inventories Objective function
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1) MAXIMIZATION
∑e
o∈O
Oo
[(1 − Zo ) M
+ o
− o
−M ]
subject to „ Supply market constraints (1). Facility layout, space and exclusive options constraints (5), (6) and (7). „ Seasonal capacity option usage constraints (8). „ Production activities flow equilibrium constraints (9) and (10). „ Storage activities inventory ing constraints (11) and (12). „ Production and storage capacity constraints (14), (15) and (16). „ Sales market constraints (17) and (18). „ Facilities total cost and revenue definitions (19),(20) and (21).
CASE 2:Deg logistics networks in divergent process industries: methodology and its application to the lumber industry (1)
References 1.Deg logistics networks in divergent process industries:A methodology and its application to the lumber industry; Didier Vila, Alain Martel, Robert Beauregarda;(Int. J. Production Economics 102 (2006) 358–378) 2.A dynamic distribution model for combat logistics,Kevin R. Gue,Computers & Operations Research 30 (2003) 367–381
3.Supply chain management,Stratrgy, Planning,Operation;SUNIL CHOPRA, PETER MEINDL
ﺭﺿﺎ ﺯﻧﺠﻴﺮﺍﻧﻲ ﻓﺮﺍﻫﺎﻧﻲ ﻭ،“”ﻃﺒﻘﻪ ﺑﻨﺪﻱ ﻣﺴﺎﺋﻞ ﺗﻮﺯﻳﻊ ﺩﺭ ﻣﺪﻳﺮﻳﺖ ﺯﻧﺠﻴﺮﻩ ﺗﺎﻣﻴﻦ.4 (ﻣﻬﺴﺎ ﺍﻟﻬﻲﭘﻨﺎﻩ )ﺍﻭﻟﻴﻦ ﻛﻨﻔﺮﺍﻧﺲ ﻣﻠﻲ ﻟﺠﺴﺘﻴﻚ ﻭ ﺯﻧﺠﻴﺮﻩﺗﺎﻣﻴﻦ اﺣﻤﺪ اﺧﻮﯼ، (ﻣﺪﻳﺮﻳﺖ ﺗﻮزﻳﻊ) ﻋﻠﻤﯽ و ﻋﻤﻠﯽ.5
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