Production Network Planning Process

16 Schmenner et al. (1987) explicitly study the relative importance of location factors at the state and actual location level. 

Identifica- Evalua-tion of tion of alternatives / alternatives 

In the following chapters the individual phases of the planning process and the major activities taking place in each phase are outlined. The decision support tools proposed for the production network optimization phase and the site selection phase will be developed in Chapters 3 and 4 respectively. 

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The SNP model contains all relevant locations, i.e., production plants and distribution centers, in the supply network. The cross-locational sourcing aspect of the planning scenario is handled within the master planning process. SNP determines which of the plants produces which quantities of which products in which time periods. On a rough level, SNP also determines which production alternative is used at a specific plant, for instance with regard to ingredients and general process characteristics. 

For specialty chemicals production networks, the planning and controlling process has to combine the site perspective and the value chain perspective. Most specialty chemicals companies have a division/business unit organization and operate sites shared by several divisions. While each division can cover the value chain perspective individually, for example by integrating the above-mentioned indicators into controlling processes, the site perspective requires cross-divisional coordination to avoid suboptimal solutions. Different options ranging from centralized to decentralized setups exist to do so (cf. Hayes and Wheelwright 1984, pp. 120-125). 

The development of such an action plan can itself be viewed as a catalytic process where networks between actors within the organic subsector are formed. These actors are not only policy makers within administrations, parliaments and governments, but also include many others consumers, farmers and every one involved in the processing, distribution and marketing chain for organic products. A discussion process that might be initiated by the government but includes all these... 

In the previous chapters isolated planning problems in chemical industry are described, reviewed and modelled. These approaches allow analysts to model typical chemical production processes and logistical planning problems in chemical production networks. Chemical production networks consist of many chemical plants clustered at chemical production sites. Such networks can be seen as an important part of chemical supply chains (SC). In the scientific literature, there is no unique and concise definition what a SC is, but some common features are prevalent in most definitions ... 

In the management of chemical SCs, product flows within chemical production networks are to be planned from a focal point of view. I.e. local and network-wide processes have to be managed such that the production network s total performance is optimized. Figure 4.1 shows the schematic overview of the exemplary chemical SC where relevant elements for integrated planning are highlighted. 

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