Structuring a DC Network Ken Homa. Manufacturing Plants Distribution Centers Intermediaries End Users Customers.

Slides:

Advertisements

Similar presentations

1 When to Plan? Demand (volume, dispersion, predictability) Customer service requirements (customer expectations and competition) Product characteristics.

Advertisements

Logistics Network Configuration

Network Planning.

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 3 Network Planning.

OPSM 305 Supply Chain Management Class 3: Logistics Network Design Koç University Zeynep Aksin

Logistic Management Warehousing

Operations and Supply Chain Management

Supply Chain Update June 19, Supply Chain Update For Campbell Sales Organization Supply Chain Update Agenda 1.Customer Service 2.Customer Pickup.

Transportation in a Supply Chain

Typical supply chain upstream downstream.

Logistics Cost Part II Professor Goodchild Spring 11.

Warehousing Decisions

Distribution Strategies

Supply Chain Logistics Management

Growth in international trade Caused greater reliance on intermodal connections, ports, and air terminals.

Channels of Distribution Chapters 15, 16 Any series of firms that participate in the flow of goods from producer to final user.  Short: producer → consumer.

Transportation Costs and Pricing Transportation Costs FOB vs Delivered Pricing Value of Service/Differential Pricing Optimal Pricing Factors that Affect.

1 The Supply Chain Supplier Inventory Distributor Inventory Manufacturer Customer Market research data scheduling information Engineering and design data.

Supply Chain Planning Dinesh Garg Indian Institute of Science Bangalore-India September 27, 2003 Foundations of Global Supply Chain Management.

TRANSPORTATION MANAGEMENT

1 1 Transportation & Supply Chain Costs John H. Vande Vate Spring, 2001.

Transportation Infrastructure

11-1 The Storage and Handling System Chapter 11 CR (2004) Prentice Hall, Inc. “The day soldiers (subordinates) stop bringing you their problems is the.

Chapter 3 Supply Chain Drivers and Obstacles

Coordinated by :M. Abu Nahle Gathered from : www. en.wikipedia.org Supply Chain Management.

P.Chandiran.  Cores  Remanufactured parts  New parts  OEM parts.

1 utdallas.edu/~metin Managing Transportation in a Supply Chain Chapter 13.

The Logistic Network: Design and Planning

Supply Chain and Logistics Management

Slides 6 Distribution Strategies

A Case Study: BuyPC.com Developed by Jim Morton; UPS Professional Services David Simchi-Levi; MIT Michael Watson; LogicTools, Inc. See also BuyPC.pdf.

Marketing Management MKTG 6170: Module II: Supply Chain Management/ Distribution Supply Chain ◦ An alignment of firms/exchanges  Exchange perspective.

Logistics Management CHAPTER ELEVEN McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Andy Koch Andy DeVries Elizabeth Smith David Reynolds.

Real-time management of inventory for items Inventory Concept LOGISTIC & WAREHOUSING.

Manufacturing Strategy Ken Homa. Manufacturing Strategy Capacity –Level –Deployment Centralization Vertical integration Scope / focus.

Materials Management Systems

11DSCI4743 Physical Distribution Definition Physical distribution is the movement & storage of finished goods from the end of production to the customer.

Real-time management of inventory for items Inventory Concept LOGISTIC & WAREHOUSING.

Collecting Local Freight Data – Washington Potatoes Potato production identified by USDA data Supply chain and potato processors identified by State Potato.

Professor Goodchild Spring 08

2-1 Logistics/Supply Chain Strategy and Planning Chapter 2 “If you don’t know where you want to go, any path will do.” CR (2004) Prentice Hall, Inc.

ROI Trees Ken Homa. Capacity Return on Investment Profits Revenue Costs ROI Investment Working Capital Inventory Receivables Payables Plant & Equipment.

Logistics Management CHAPTER ELEVEN McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Spring 02 Vande Vate 1 1 Modeling Service When Transport is restricted to Load-Driven Pool Points in Retail Distribution John Vande Vate Spring.

3-1 Chapter 3: Network Planning CMB 8050 Matthew J. Liberatore.

Main Function of SCM (Part I)

1 1 ISyE 6203 Consolidation John H. Vande Vate Spring 2012.

Chapter 13 Transportation in the Supply Chain

Designing the Distribution Network in a Supply Chain

Logistics Systems Prof. Costas Panou Lecture #3 in M.Sc New Technologies in Shipping and Transportation.

1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 27.

1 1 Frequency: Inventory vs Transportation John H. Vande Vate Spring, 2007.

IE 8580 Module 2: Transportation in the Supply Chain

Chapter 13 Transportation in a Supply Chain

FORD MOTOR COMPANY Tsirigotis Dionisis

Distribution Strategies

Chapter 3 Supply Chain Drivers and Obstacles

Chapter 3 Supply Chain Drivers and Obstacles

Common Learning Blocks

LOGISTICS NETWORK.

Physical Distribution

GEOP 4355 Distribution Networks

Chapter 3 Supply Chain Drivers and Obstacles

Transport Decisions Chapter 7

Chapter 3 Supply Chain Drivers and Metrics

Streamlining the Supply Chain More Flow and Less Hold

Chapter 3 Supply Chain Drivers and Obstacles

John H. Vande Vate Spring, 2005

Physical Distribution Definition

Presentation transcript:

Structuring a DC Network Ken Homa

Manufacturing Plants Distribution Centers Intermediaries End Users Customers

Plant Distribution Networks Centralized, decentralized DC Market Area Trade-off : customer service and operating costs

Plant DC CCCCC Distribution Networks Building Blocks C, Q, F, S

Plant DC CCCCC Transportation Distribution Networks Cost Components

Plant DC CCCCC Handling (out) Transportation Distribution Networks Cost Components Handling (in)

Plant DC CCCCC Handling (out) Handling (in) Transportation Storage Distribution Networks Cost Components Optimize “landed cost” systemwide

Plant DC Increasing Distance Single plant, co-located DC Transportation Costs In general, transportation costs increase with distance for comparable “types” of shipments

Transportation Tactics Load consolidation Backhauling Dynamic routing Distribution networking

Transportation Costs By Type $/Unit Truck LTL Parcel Premium Load (UPS) (Overnite)

Transportation Costs Backhauls Origin Destin- ation Backhauls Full trucks (to and from) Single destinations

Transportation Costs Dynamic Routing Origin Destin- ation Single destinations Max full truck distance Destin- ation Full TruckPartial Truck Drop Off Charges

Transportation Costs Distribution Networking Origin Customer Max full truck distance Efficiently route LTL DC Full TruckPartial Truck LTL

Plant DC Distribution Networks Single plant, multiple DCs DC

Cost adders …. Overhead / fixed costs Handling steps Less than truckload rates Offset by truckload volumes to DCs

Investment adders... DC “plant & equipment” Inventory (“local safety stock”) Forecast error (fragmented forecast) Lead times (plant to DC to customer) Service level multiplier...

Service Level -> Safety Stock Factor

Distribution Networks Principles Local => faster response Scale determines degree of affordable decentralization Ship full trucks : consolidation, backhaul, dynamic routing Answer derived from policy & analysis

Structuring a DC Network