Supply chain zones

Demand-driven supply chain Zones for forecast-driven and demand-driven rules. Top down 28... 

FIGURE 24.5 Supply chain zones. (Source CRC Press, Boca Raton, FL. With permission.)... 

Supply Chain Needs 1467 3.4. Free Trade Zones 1489... 

Note that unlike the solution in the earlier section, this approach takes account of the cost along the entire path from the plant to the warehouse to the customer zone. However, it still does not account for plant P2 s capacity when making the customer zone sourcing decision. Thus, a possible reason for the absence of a lowest-cost solution for the supply chain is that we may not have allocated plant P2 s capacity optimally across the warehouses. 

The zone display is useful where it makes sense to divide the supply chain into separate upstream, downstream, and reverse-flow components. This is often the case with products requiring a complex supply chain. Placing trading partner legal entities in these zones facilitates analysis and process improvement. 

An obvious example is production interruptions and shortages. If any one of the supply chain links breaks and fails to deliver, then the entire chain is threatened. Such a company or supply chain lacks flexibility. Section 3-5 described the flexibility imperative. Variability of any type reinforces the need for designing flexibility into the chain, widening the lowest-cost operating zone. 

P G sells over 300 brands of consumer products around the world. In 1993, P G s Operations Research (OR) team undertook a major study, called Strengthening Global Effectiveness, to restructure P G s global supply chain. A major part of the study was to examine the North American supply chain, which had 60 plants, 15 DCs, and more than 1000 customer zones. To be globally competitive, P G decided to consolidate manufacturing plants to reduce cost and improve speed to market. The OR team decomposed the... 

AU these requirements can be implemented by a secure data exchange platform which represents the hierarchy of the entire supply chain network (Fig. 23.9). The basic communication mns via web, the tool is installed in the demilitarized zone (DMZ) and can thus be accessed by all involved parties. 

The concept model at the case level (Fig. 7.8) contains two main types of elements (1) relevant domain level concepts and (2) case specific instances of the domain level concepts. The domain level concepts included in the concept model are Supplier, Material, Product, Customer Zone, Distribution Center, and Plant, while concepts such as Process are not included because they are not relevant to the particular analysis. The model specifically shows that sea and ground transportation is used to link the indicated type of supply chain units. Associations among these concepts are used to define general relationships among different constituent parts of the supply chain. These associations are subsequently important to define data structure and analysis models (see Sect. 4.3). The Link concept is used to represent connections between supply chain units. For instance, it shows that products are delivered from plants to distribution centers via a given fink. 

Different mechanisms are used to represent various entities from the supply chain object model. In the case of using ARENA (Rockwell 2001) as a simulation modeling tool, a supply chain unit object is represented as a standardized sequence of simulation modeling blocks, customer zones are represented using a differently structured sequence of simulation modeling blocks, products and materials are... 

Supply chain management with a limited number of partners in the same time zone... 

Our previous inter-corporate supply chain projects covered up to six enterprises, including service providers (status 2000). All are to be found in the same time zone, all have the same clock time. 

Corresponding to each arc of the supply chain network that links a facility (plant/DC) to a customer zone. 

Consider that a global supply chain consists of suppliers, manufacturing plants, distribution centers (DCs), and customer zones that are located in different locations. There are multiple transportation links available between each pair of facilities. Raw materials are shipped from suppliers to plants in order to produce finished products. Finished products are then shipped to DCs to support customer demand. A physical representation of a global supply chain is shown in Figure 7.2. 

Consider a global supply chain that consists of three suppliers (Kl, K2, K3), two manufacturing plants (Ml, M2), two DCs (Nl, N2), and three customer zones (Cl, C2, C3), which are located in different locations. There are two transportation links (Ul, U2) available between each pair of facilities. There are two types of raw materials (il, i2) and two types of finished products (jXfl). A representation of the global supply chain is shown in Figure 7.4. 

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