Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain
by Sara Lewis, Michael Watson, John Bell, Thomas J. Golds, Peter Cacioppi, Jay Jaya
The Definitive Guide to Modern Supply Chain Management (Collection)
- About This eBook
- Title Page
- Copyright Page
- Table of Contents
- Global Macrotrends and Their Impact on Supply Chain Management: Strategies for Gaining Competitive Advantage
- Title Page
- Copyright Page
- Dedication Page
- Acknowledgments
- About the Authors
- Preface
- Part I: Global Macrotrends Impacting the Supply Chain Environment
- Part II: Macrotrend Implications for Supply Chain Functionality
- Part III: Macrotrend Risk-Mitigation Strategies
- Index
- FT Press
- Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain
- Copyright Page
- Dedication Page
- Praise for Supply Chain Network Design
- Acknowledgments
- About the Authors
- Preface
- Part I: Introduction and Basic Building Blocks
- 1. The Value of Supply Chain Network Design
- What Is Supply Chain Network Design and Why Is It Important?
- Quantitative Data: Why Does Geography Matter?
- Quantitative Data: Why Have Warehouses?
- Quantitative Data: Why Have Multiple Plants?
- Solving the Quantitative Aspects of the Problem Using Optimization
- Data Precision Versus Significance: What Is the Right Level in Modeling?
- Nonquantifiable Data: What Other Factors Need to Be Considered?
- Nonquantifiable Data: What Are the Organizational Challenges?
- Where Are We Going with the Book?
- End-of-Chapter Questions
- 2. Intuition Building with Center of Gravity Models
- 3. Locating Facilities Using a Distance-Based Approach
- 4. Alternative Service Levels and Sensitivity Analysis
- What Does Service Level Mean?
- Supply Chain Design Service Levels
- Consumer Products Case Study: Chen’s Cosmetics
- Consumer Products Case Study: Chen’s Cosmetics European Warehouse Selections
- Mathematical Formulation
- Service-Level Constraints
- The Importance of Sensitivity Analysis on Any Solution
- Lessons Learned from Alternative Service Levels and Sensitivity Analysis Modeling
- End-of-Chapter Questions
- 5. Adding Capacity to the Model
- Case Study: Swimming Pool Chemicals
- Case Study: Warehouse Capacity Utilization
- Case Study: Paint Company and Capacity
- Adding Capacity to the Model
- Mathematical Formulation
- Possible Difficulty with Models That Have Capacity Constraints
- How Capacity Constraints Can Change a Model
- Lessons Learned for Adding Capacity to Our Models
- End-of-Chapter Questions
- 1. The Value of Supply Chain Network Design
- Part II: Adding Costs to Two-Echelon Supply Chains
- 6. Adding Outbound Transportation to the Model
- Formulating and Solving the Problem
- Demand is Expressed in Total, Not Shipment by Shipment
- Transportation Costs Per Unit
- Determining All the Transportation Costs
- Regression Analysis for Building a Rate Matrix
- Estimating Multistop Costs
- Transportation Case Study
- Lessons Learned with Transportation
- End-of-Chapter Questions
- 7. Introducing Facility Fixed and Variable Costs
- 8. Baselines and Optimal Baselines
- 6. Adding Outbound Transportation to the Model
- Part III: Advanced Modeling and Expanding to Multiple Echelons
- 9. Three-Echelon Supply Chain Modeling
- JADE’s Corporate Background
- Determining Warehouse Locations with Fixed Plants and Customers
- The Problem and the Mathematical Formulation
- JADE Case Study Continued...
- Plant Locations Considering the Source of Raw Material
- Linking Locations Together for More Than Three Echelons
- Lessons Learned from Three-Echelon Supply Chain Modeling
- End-of-Chapter Questions
- 10. Adding Multiple Products and Multisite Production Sourcing
- Why Model Products?
- Adding Products to the Model—Mathematical Formulation
- Case Study—Value Grocers, Grocery Retailer
- Addition of Product Sourcing
- Modeling Bills-of-Material (BOMs)
- Bills-of-Material Example—Beer Manufacturing Process Modeling
- Lessons Learned from Adding Products
- End-of-Chapter Questions
- 11. Multi-Objective Optimization
- 9. Three-Echelon Supply Chain Modeling
- Part IV: How to Get Industrial-Strength Results
- 12. The Art of Modeling
- Understanding the Supply Chain
- Start with Small Models and Iterate
- Run a Lot of Scenarios—Don’t Be Afraid to Experiment
- Don’t Be Afraid of Including Things in the Model That Don’t Exist in the Actual Supply Chain
- Models Are Not a Substitute for Due Diligence and Decision Making
- Optimization Will Do Anything to Save a Penny
- Debugging Models
- Fixing Infeasible Models
- Fixing Feasible Models
- Lessons Learned for the Art of Modeling
- End-of-Chapter Questions
- 13. Data Aggregation in Network Design
- Aggregation of Customers
- Validating the Customer Aggregation Strategy—National Example
- Validating Customer Aggregation—Regional Example
- Aggregation of Products
- Testing the Product Aggregation Strategy
- Aggregation of Sites
- Aggregation of Time Periods
- Aggregation of Cost Types
- Lessons Learned on Aggregation
- End-of-Chapter Questions
- 14. Creating a Group and Running a Project
- 12. The Art of Modeling
- Part V: Case Study Wrap Up
- Index
- FT Press
- Demand and Supply Integration: The Key to World-Class Demand Forecasting
- Copyright Page
- Praise for Demand and Supply Integration
- Dedication Page
- Acknowledgments
- About the Author
- Preface
- 1. Demand/Supply Integration
- The Idea Behind DSI
- How DSI Is Different from S&OP
- Signals that Demand and Supply Are Not Effectively Integrated
- The Ideal Picture of Demand Supply Integration
- DSI Across the Supply Chain
- Typical DSI Aberrations
- DSI Principles
- Critical Components of DSI
- Characteristics of Successful DSI Implementations
- DSI Summary
- 2. Demand Forecasting as a Management Process
- 3. Quantitative Forecasting Techniques
- 4. Qualitative Forecasting Techniques
- 5. Incorporating Market Intelligence into the Forecast
- 6. Performance Measurement
- 7. World-Class Demand Forecasting
- 8. Bringing It Back to Demand/Supply Integration: Managing the Demand Review
- Index
- The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM
- Copyright Page
- Dedication Page
- Acknowledgments
- About the Author
- Preface
- 1. Comprehensive Coverage of Supply Chain Issues
- 2. Supply Chain Risk Management
- Case 3. Improving Stanford Blood Center’s Platelet Supply Chain1
- Case 4. Financial and Operational Risk Management at Molson Coors1
- Case 5. Toyota China: Matching Supply with Demand1
- Case 6. Cisco Systems, Inc.: Supply Chain Risk Management1
- Case 7. BESSI: The Importance of Coordinating Product Development with Supply Chain Planning in the Fashion Goods Industry
- Company Background
- BESSI Leather Goods
- The Central Role of Planning
- The Challenge
- Discussion Questions
- Appendix 7-1 Gantt Chart of the Fashion Product Collection Definition (from Grid Definition to Start of Production)
- Appendix 7-2 Fashion Product Collection Definitions
- Appendix 7-3 Demand Forecasting Process
- 3. Supply Chain Analytics
- Case 8. Queuing at eCycle Services
- Case 9. Multi-Echelon Inventory Decisions at Jefferson Plumbing Supplies: To Store or Not to Store?
- Case 10. Global Pharma: Managing Uncertainty
- Case 11. Supplier Selection at Kerneos, Inc.
- Case 12. The Interface between Demand Management and Production Strategies at TractParts
- Case 13. Analyzing Distribution Network Options at Remingtin Medical Devices
- Case 14. NunaSacha: A Facility Redesign in the Ecuadorian Andes1
- Case 15. Sherman’s Supply Chain Challenge: Stopping the Retailer from Overcharging for Soda
- 4. Short but Sweet
- Case 16. Ethical Product Sourcing in the Starbucks Coffee Supply Chain
- Case 17. Tmall, The Sky Cat: A Rocky Road Toward Bringing Buyers and Suppliers Together
- Case 18. Make to Demand with 3-D Printing: The Next Big Thing in Inventory Management?
- Case 19. Airbus’ Overstretched Supply Chain: Just How Far Can You Go Before Your Supply Chain Snaps?
- Case 20. How to Keep Your Food Supply Chain Fresh
- Case 21. The End of Lean?: Automobile Manufacturers Are Rethinking Some Supply Chain Basics
- 5. Unique Challenges from Around the Globe
- Case 22. A Brazilian Dairy Cooperative: Transaction Cost Approach in a Supply Chain
- Case 23. Continuous Process Reforms to Achieve a Hybrid Supply Chain Strategy: Focusing on the Organization in Ricoh
- Case 24. Improving Preparedness in Supply Chain Risk Management at Jacket
- Case 25. Supply Chain Strategy at Zophin Pharma
- Case 26. Waste to Wealth—A Distant Dream?: Challenges in the Waste Disposal Supply Chain in Bangalore, India
- Case 27. Transitioning the Supply Network of Chennai Engineering Ltd to Cloud Computing1
- About the Company
- The Power Sector in India
- The Challenge
- Cloud Computing
- Supply Chain Structure of CEL
- IT in SCM
- Discussion Questions
- References
- Appendix 27-1: CEL’s Balance of Plants Business in the Power Sector
- Appendix 27-2: Trends in Installed Generating Capacity of Electricity Nonutilities in India from 1970–71 to 2010–11
- Appendix 27-3: Business Process of CEL Sourcing
- Case 28. Tussle between Maintaining Customer Satisfaction and Supply Chain Constraints: IGNYS Automotive1
- Case 29. When a Western 3PL Meets an Asian 3PL, Something Magical Happens
- Case 30. Supply Chain Risk Management for Macro Risks
- Index
- FT Press
Supply Chain Network Design
Applying Optimization and Analytics to the Global Supply Chain
Michael Watson, Sara Lewis,
Peter Cacioppi, and Jay Jayaraman
-
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