1. Decision Support Systems for Supply Chain Management
Chap 10
王仁宏 助理教授
國立中正大學企業管理學系
©Copyright 2001 製商整合科技中心

2. Decision Support Systems
Some decisions are better made by people: flexibility, intuition, wisdom
Some decisions are better made by computers
DSS allow computers and people to work together to make better decisions, range from spreadsheets to expert systems.
Advanced Planning and Scheduling (APS)

3. Areas of DSS Demand planning
Supply planning: distribution resource planning system (DRP)
Manufacturing planning and scheduling

4. Mathematical Tools of DSS
Operations research: developed in World War II
Artificial intelligence (AI): intelligent agents
Expert systems: a kind of AI, rely on an extensive database of knowledge

5. DSS Components Input data Analytical tools Presentation tools
Becoming easier to obtain
Quality important - validation
Analytical tools
Simulation, AI, optimization, data mining
Heuristics vs. Optimal solutions, bounds
Presentation tools
GIS, graphical displays

6. Analytical Tools Queries Statistical analysis Data mining
Online analytical processing (OLAP) tools
Calculators
Simulation
Artificial intelligence
Mathematical models and algorithms

7. Choose Appropriate Analytical Tools
The type of problem being considered
Required accuracy of the solution
Problem Complexity
Number and type of quantifiable output measures
Required speed of DSS
Number of objectives or goals of the decision maker

8. Applications and Analytical Tools
Marketing: Query, statistics, data mining
Routing: Heuristics, exact algorithm
Production scheduling: simulation, heuristics dispatch rules
Logistics network configuration: simulation, heuristics, exact algorithms
Mode selection: heuristics, exact algorithm

9. Presentation Tools Reports Charts Spreadsheet tables Animation
Specialized graphic formats: layout
Geographic Information System (GIS)

10. GIS Capabilities Mapping and thematic mapping Database management
Interactive data query
Spatial data retrieval
Geographic data manipulation
Spatial data analysis
Geocoding: translate addresses into geographic coordinates
Geographic data import/export
Buffering/polygon overlay

11. GIS Application Areas Marketing analysis
Census and demographic data analysis
Real estate
Geology
Forestry
Network analysis
Site selection
Routing
Supply chain management

12. DSS Evaluation
P. 272

13. Logistics Network Design

14. DSS Examples Logistics Network Design Supply Chain Planning
Vehicle Routing and Scheduling

15. Logistics Network Design
Data:
A listing of all products
Location of customers, existing warehouses and sources
Demand for each product by customer location
Transportation rates
Variable production costs
Warehousing costs
Shipment sizes by product

16. Logistics Network Design
Data (Contd.):
Order patterns by frequency, size, season, product
Order processing costs
Customer service objectives

17. Logistics Network Design

18. Logistics Network Design
The Key Issues:
Number of warehouses
Location of each warehouse
Size of each warehouse
Allocation of products to the different warehouses
Allocation of customers to each warehouse

19. Logistics Network Design
The Objective is to balance service level against
production/ purchasing costs,
inventory carrying costs,
facility costs
storage,
handling,
fixed,
transportation costs.

20. Logistics Network Design

21. Supply Chain Planning Data:
Information regarding suppliers, manufacturers, warehouses and retail stores.
Forecast demands for each store.
Available transportation modes, transportation costs and inventory costs.

22. Supply Chain Planning Demand planning
Production planning and detailed scheduling
Distribution planning

23. Supply Chain Planning Constraints: Goal:
Each store receives its demand.
Warehouse Capacity.
Supplier/ Manufacturer limitations.
Delivery Time.
Service Level.
Goal:
Design production and distribution schedules so that no constraint is violated and total cost including manufacturing, inventory and transportation is as small as possible.

24. Vehicle Routing Data: A set of vehicles,
demand locations (or customers) where demand is picked up,
depots.

25. Vehicle Routing

26. Vehicle Routing Constraints:
Each demand location is visited and the demand is picked
Vehicle Capacity.
Distance Constraint.
Time Window Constraints:
Earliest Pick-up time,
Service time,
Latest pick-up time.

27. Vehicle Routing
Goal:
Design routes for vehicles such that no constraint is violated and either
total length of routes is as small as possible, or
number of vehicles is minimized.

28. Vehicle Routing

29. Vehicle Routing

30. DSS: Past Approaches and Limitations
Many procedures have been developed.
A common limitation of these procedures is the lack of robustness
Lack of inexpensive graphical representation tools for geographic data.
Inability to solve large scale problems on desk-top computers.

31. New Developments Deeper understanding of
the underlying structure of effective strategies for large scale models,
uncertainty issues.
Development of new procedures that are
robust
efficient
practical
fast.

32. New Developments Significant increase in computing power.
Development of desk-top Decision Support tools such as Geographic Information Systems (GIS).

33. Geographic Information Systems (GIS)
Definition: A GIS is an integrated computer mapping and database management system that provides functions for the storage, retrieval, management, analysis and display of geographic data.

34. Typical GIS Capabilities
Mapping
Database management
Geographic Data Retrieval
Geographic Data Manipulation
Geographic Data Analysis

35. Typical GIS Interface

36. Typical GIS Applications
Census and Demographic Data Analysis
Market Analysis
Land Use/ Parcel Mapping
Network Analysis
Transportation,
Telecommunications
Site Location Modeling
Distribution, Logistics and Supply-Chain Management.

37. Benefits of Integrating GIS with Optimization
Development of Model Input
Visualization of Data
Provides Accurate Street Level Data Base
One Way Streets
Turn Difficulties
Visualization of Strategies Generated by the Procedure

38. Benefits of Integrating GIS with Optimization
Incorporate Travel Time Estimation
Model Evaluation
Interactive Decision Support System.

39. Table 1:Software Vendors/Logistics

40. A Step Back: Information Technology
Internal and external systems connecting the parts of the firm to each other, customers and suppliers
Companies employ various systems:
Decision support systems
Warehouse management systems
Production planning and tracking
Transaction and sales processing
Communications systems: , Intranets

41. Memo