Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain, CourseSmart eTextbook

Using strategic supply chain network design, companies can drive consistent dramatic savings throughout their global supply chains. Now, logistics experts at IBM and Northwestern University have brought together both the rigorous principles and the practical applications supply chain designers need to master to improve the flow of physical products across the globe. Readers learn how to use network design techniques to:

• Select the right number, location, and size of warehouses, plants, and production lines
• Specify territories associated with each facility
• Optimize flow of all products through the supply chain
• Decide what to manufacture internally, where to make these products, which products to outsource, and which suppliers to use
• Manage tradeoffs such as cost vs. service level
• More effectively integrate analytics throughout supply chain management, optimizing regularly for even greater savings

This book brings together industry best practices, expert methods in logistics, optimization and analytics, and cutting-edge, illustrative case studies: everything professionals need to maximize the value of global supply chain network design and modeling.

Preface     xvi

Part I: Introduction and Basic Building Blocks

Chapter 1: THE VALUE OF SUPPLY CHAIN NETWORK DESIGN     1

Chapter 2: INTUITION BUILDING WITH CENTER OF GRAVITY MODELS     23

Chapter 3: LOCATING FACILITIES USING A DISTANCE-BASED APPROACH     37

Chapter 4: ALTERNATIVE SERVICE LEVELS AND SENSITIVITY ANALYSIS     63

Chapter 5: ADDING CAPACITY TO THE MODEL     83

Part II: Adding Costs to Two-Echelon Supply Chains

Chapter 6: ADDING OUTBOUND TRANSPORTATION TO THE MODEL     99

Chapter 7: INTRODUCING FACILITY FIXED AND VARIABLE COSTS     127

Chapter 8: BASELINES AND OPTIMAL BASELINES     139

Part III: Advanced Modeling and Expanding to Multiple Echelons

Chapter 9: THREE-ECHELON SUPPLY CHAIN MODELING     157

Chapter 10: ADDING MULTIPLE PRODUCTS AND MULTISITE PRODUCTION SOURCING     177

Chapter 11: MULTI-OBJECTIVE OPTIMIZATION     207

Part IV: How to Get Industrial-Strength Results

Chapter 12: THE ART OF MODELING     217

Chapter 13: DATA AGGREGATION IN NETWORK DESIGN     237

Chapter 14: CREATING A GROUP AND RUNNING A PROJECT     261

Part V: Case Study Wrap Up

Chapter 15: CASE STUDY: JPMS CHEMICALS CASE STUDY     277

Index     295