Supply chain design

In general, supply chain simulation can be used along the lifecycle of supply chains, that is from supply chain design to support of supply chain operation. In supply chain design, simulation models can support supply network design (decisions on the location, ramp up or shutdown of production or warehousing sites) as well as the adjustment of control parameters such as safety stock at different... 

On a larger scale, Tsiakis, Shah and Pantelides (2001) developed a supply chain design for multiple markets and plants of steady-state continuous processes. Similarly, Ryu, Dua and Pistikopoulos (2004) presented a bilevel framework for planning... 

Technology for Natural Gas Supply Chains Design and Engineering... 

Beamon BM (1998) Supply chain design and analysis Models and methods. International Journal of Production Economics 55 281-294... 

Bertrand JWM (2003) Supply Chain Design Flexibility Considerations. In de Kok AG, Graves SC (eds) Supply Chain Management Design, Coordination and Operation. Elsevier, Amsterdam et al., pp 133-198... 

Daskin MS, Snyder LV, Berger RT (2005) Facility location in supply chain design. In Langevin A, Riopel D (eds) Logistics systems Design and optimization. Springer, Berlin et al., pp 39-65... 

Mo Y, Harrison TP (2005) A conceptual framework for robust supply chain design under demand uncertainty. In Geunes J, Pardalos PM (eds) Supply Chain Optimization. Springer, Berlin et al., pp 243-263... 

Fig. 22.3 Service level breakpoints determining supply chain design.

Persson, F. and Olhager, J. (2002). Performance simulation of supply chain designs. International Journal of Production Economics, 77, 231-245. 

Guill6n G., Mele F., Bagajewicz M., Espuna A. and Puigjaner L. 2003b. Management of financial and consumer satisfaction risks in supply chain design. Proceedings of ESCAPE 13. Lappeenranta, Finland, 1-4 June 2003. 

Thus, outsourcing represents an opportunity that should be considered in supply chain design and evaluation of existing supply chains. In addition, the role and utility of the distributor ace chemging. In some cases, consolidation of suppliers and customers has reduced the value and functionaUty of distributors. 

A firm must become involved in the supply chain design process when it is considering entering the market with a new product or when existing supply chains are falling short of performance objectives. The supply chain design process consists of the following steps (Lambert 1978) ... 

Product characteristics are a major consideration in supply chain design. Nine product characteristics should be analyzed by the designer the product s value, the technicality of the product, the degree of market acceptance, the degree of substitutabdity, the product s bulk, the product s perishability, the degree of market concentration, seasonality, and the width and depth of the product line. 

The order cycle is the time that elapses between the customer s order placement and the time the product is received. The ability to achieve the targeted order cycle time consistently influences the amount of inventory held throughout the supply chain. Consequently, the speed and consistency of the order cycle are prime factors in supply chain design. Most customers prefer consistent service to fast service because the former allows them to plan inventory levels to a greater extent than is possible with a fast but highly variable order cycle. 

A number of factors influence supply chain design, evolution, and performance. 

Wheel conveyors, see Skate wheel conveyors Whirlpool, 950 Whole Food Markets, 861 Whole-population analysis, 1115 Wholesalers, and supply chain design, 2128 WHO (World Health Organization), 1165 Wide area networks (WANs), 212, 213, 231, 255-256... 

Response time, product availability and variety, customer experience, time to market, order visibihty, and retumability effect supply chain design decisions Manufacturing processes (i.e. batch, job shop) have impact on supply chain efficiency. 

Abstract Transportation and facility location decisions are crucial in strategic supply chain design. Optimization models guide location decisions giving the optimal site selection under certain assumptions and constraints. It is an art to decide which model to use and how to modify the results based on the needs of a company. This chapter presents some of the important optimization models in supply chain. Mathematical formulations and solution procedures are also given. The models can be expanded for multi-echelon supply chains and/or include multiple products. 

Multiple products (integration of bills of materials into supply chain design received the attention of many researchers)... 

They reveal that facility location problems mostly include inventory and production decisions as well while routing, transportation mode selection, and procurement integrated location decision problems receive less attention in the literature. Facility location decisions are strategic in supply chain design since a company supply chain will need to adapt to changing market needs migrating to new locations for example. They also state that most of the facility location studies consider minimization of costs as the objective. 

This model reflects a physics perspective, however this model might not fit a regular supply chain design since objective function employs a second degree penalty for unit distance travelled. However, gravity location model can give insight for potential location areas. Every model is an abstraction of reality that comes with assumptions. This model is no exception. This model does not take into account the physical features of location areas, i.e. mountainous or not, proximity to labor force or required infrastructure etc. 

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