{"id":136,"date":"2016-06-27T16:52:52","date_gmt":"2016-06-27T16:52:52","guid":{"rendered":"http:\/\/blogs.uww.edu\/prasad\/?page_id=136"},"modified":"2016-06-27T16:52:52","modified_gmt":"2016-06-27T16:52:52","slug":"network-design-in-supply-chain-management","status":"publish","type":"page","link":"https:\/\/blogs.uww.edu\/prasad\/teaching\/independent-study\/network-design-in-supply-chain-management\/","title":{"rendered":"Network design in supply chain management"},"content":{"rendered":"

Sue Abdinnour-Helm<\/p>\n

International Journal of Agile Management Systems<\/h2>\n

1999, Vol. 1, No. 2, pp. 99-106<\/p>\n

 <\/p>\n

1)\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction<\/p>\n

    \n
  1. a) 3 major components of supply chains<\/li>\n
  2. i) Management of internal functions: processes used to transform raw materials to finished product<\/li>\n<\/ol>\n

    (1)\u00a0\u00a0 procurement<\/p>\n

    (2)\u00a0\u00a0 production<\/p>\n

    (3)\u00a0\u00a0 distribution<\/p>\n

      \n
    1. ii) Management of upstream suppliers: ensures that the right material is received at the right time and to the right location<\/li>\n<\/ol>\n

      iii)\u00a0\u00a0\u00a0\u00a0 Management of downstream suppliers: ensures that customers receive the products they want in a timely manner<\/p>\n

        \n
      1. b) Benefits of effective supply chain systems<\/li>\n
      2. i) Reduced costs<\/li>\n
      3. ii) Reduced inventory<\/li>\n<\/ol>\n

        iii)\u00a0\u00a0\u00a0\u00a0 Improved cycle time<\/p>\n

          \n
        1. iv) Differentiation<\/li>\n
        2. c) Proposition: Hub and Spoke network design<\/li>\n
        3. i) Improve the distribution function<\/li>\n<\/ol>\n

          (1)\u00a0\u00a0 Lower cost<\/p>\n

          (2)\u00a0\u00a0 Better performance<\/p>\n

            \n
          1. ii) Basic ideas<\/li>\n<\/ol>\n

            (1)\u00a0\u00a0 Consolidate traffic from different origins and sent it directly or via another hub<\/p>\n

            (2)\u00a0\u00a0 Products are insensitive to the number of hub stops they need to make<\/p>\n

            2)\u00a0\u00a0\u00a0\u00a0\u00a0 Hub location<\/p>\n

              \n
            1. a) Model Assumptions<\/li>\n
            2. i) All hubs are connected<\/li>\n
            3. ii) Each spoke is assigned to a single hub<\/li>\n<\/ol>\n

              iii)\u00a0\u00a0\u00a0\u00a0 All hubs have unlimited capacity<\/p>\n

                \n
              1. b) Focus on the performance of two heuristics<\/li>\n
              2. i) GA heuristic<\/li>\n<\/ol>\n

                (1)\u00a0\u00a0 Main idea: to employ the mechanics of natural selection to evolve initial solutions<\/p>\n

                (2)\u00a0\u00a0 A solution is represented by a string of 0s and 1s<\/p>\n

                (a)\u00a0\u00a0\u00a0 Length of string=number of nodes in consideration<\/p>\n

                (b)\u00a0\u00a0 1s represent a hub, 0s spokes<\/p>\n

                (3)\u00a0\u00a0 Drawback: uses distance to assign spokes and hubs as opposed to traffic patterns<\/p>\n

                  \n
                1. ii) GATS heuristic<\/li>\n<\/ol>\n

                  (1)\u00a0\u00a0 Introduced to overcome the shortcomings of using distance to assign hubs and spokes<\/p>\n

                  (2)\u00a0\u00a0 Embeds a Tabu search (TS) within the genetic algorithm heuristic<\/p>\n

                  (a)\u00a0\u00a0\u00a0 TS \u2013 a search procedure that moves from one feasible solution to another<\/p>\n

                  (b)\u00a0\u00a0 Exchange moves switch the assignment of a single city from one hub to another<\/p>\n

                  (3)\u00a0\u00a0 This heuristic is proven superior in testing<\/p>\n

                  3)\u00a0\u00a0\u00a0\u00a0\u00a0 The optimal approach<\/p>\n

                    \n
                  1. a) To minimize overall transportation cost subject to<\/li>\n
                  2. i) Number of hubs<\/li>\n
                  3. ii) Spokes are assigned to a single hub<\/li>\n<\/ol>\n

                    iii)\u00a0\u00a0\u00a0\u00a0 A node becomes a hub if another node is assigned to it<\/p>\n

                    4)\u00a0\u00a0\u00a0\u00a0\u00a0 Data Sets<\/p>\n

                      \n
                    1. a) 4 geographical layouts<\/li>\n
                    2. i) Continental USA<\/li>\n
                    3. ii) Regional USA<\/li>\n<\/ol>\n

                      (1)\u00a0\u00a0 Eastern<\/p>\n

                      (2)\u00a0\u00a0 Southwest<\/p>\n

                      iii)\u00a0\u00a0\u00a0\u00a0 Canada<\/p>\n

                        \n
                      1. iv) Western Europe<\/li>\n
                      2. b) Size of data sets is limited to 18 cities<\/li>\n
                      3. c) Distance between cities is the Euclidean distance between points as given by their coordinates<\/li>\n<\/ol>\n

                        5)\u00a0\u00a0\u00a0\u00a0\u00a0 Flow distribution<\/p>\n

                          \n
                        1. a) Global Flow of goods<\/li>\n
                        2. i) Flow of goods is assumed to be inversely proportional to the distance between cities<\/li>\n
                        3. b) Localized flow of goods<\/li>\n
                        4. i) Flow of goods is assumed to be inversely proportional to the square of the relative distances between cities<\/li>\n<\/ol>\n

                          6)\u00a0\u00a0\u00a0\u00a0\u00a0 Conclusions<\/p>\n

                            \n
                          1. a) Global flow has a lesser effect on the volume of flow between locations relative to local flow<\/li>\n
                          2. b) Models can help companies\/logistics carriers to improve the design of their distribution function<\/li>\n
                          3. c) Results indicate that both GA and GATS give high quality solutions in both environments<\/li>\n
                          4. d) GA solution quality degrades more quickly than GATS in a local environment<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

                            Sue Abdinnour-Helm International Journal of Agile Management Systems 1999, Vol. 1, No. 2, pp. 99-106   1)\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction a) 3 major components of supply chains i) Management of internal functions: processes used to transform raw materials to finished product (1)\u00a0\u00a0 procurement (2)\u00a0\u00a0 production (3)\u00a0\u00a0 distribution ii) Management of upstream suppliers: ensures that the right material […]<\/p>\n","protected":false},"author":3916,"featured_media":0,"parent":118,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-136","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/users\/3916"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/comments?post=136"}],"version-history":[{"count":1,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/136\/revisions"}],"predecessor-version":[{"id":137,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/136\/revisions\/137"}],"up":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/118"}],"wp:attachment":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/media?parent=136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}