Beruflich Dokumente
Kultur Dokumente
3-1
3-2
3-3
Network Design
Physical configuration and infrastructure of
the supply chain.
A strategic decision with long-lasting
effects on the firm.
Decisions relating to plant and warehouse
location as well as distribution and
sourcing
3-4
3-5
s.t.
n
x D
ij
, j 1,...,m
x K
, i 1,...,n
i 1
m
j 1
ij
ij
3-6
yi = 1 if plant is located
at site i, 0 otherwise
xij = Quantity shipped
from plant site i to
customer j
fi = annual fixed cost
of keeping factory i
open
Min
i 1
f y c x
i
i 1 j 1
ij
ij
s.t.
n
x D , j 1,...,m
i 1
ij
x K y , i 1,...,n
j 1
ij
y k ; y {0,1}
i 1
5-7
3-7
3-8
yi = 1 if plant is located
at site i, 0 otherwise
xij = 1 if market j is
supplied by factory i, 0
otherwise
Dj = annual demand
from customer j
Min
i 1
f y D j c x
i
i 1 j 1
ij
ij
s.t.
n
x
i 1
ij
1, j 1,...,m
D j x K y , i 1,...,n
ij
j 1
xij, y {0,1}
i
5-9
3-9
Example
Single product
3-10
p1
p2
c1
c2
c3
w1
w2
3-11
Heuristic #1:
Choose the Cheapest Warehouse to Source
Demand
D = 50,000
$2 x 50,000
$5 x 140,000
Cap = 60,000
$2 x 60,000
D = 100,000
$1 x 100,000
$2 x 50,000
D = 50,000
3-13
3-14
Optimal Solution
Facility
warehouse
p1
p2
c1
c2
c3
w1
140,000
50,000
40,000
50,000
w2
60,000
60,000
3-15