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Samenvatting H13 Supply Chain Logistic Networks

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Comprehensive and complete summary of chapter 13 Supply Chain Logistic Networks Operations Management (twelve edition) Processes and Supply Chains

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Which chapters are summarized?
Hoofdstuk 13
Uploaded on
November 19, 2021
Number of pages
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Written in
2021/2022
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Inhoudsopgave
Chapter 13 Supply Chain Logistic Networks...........................................................................................2
Factors Affecting Location Decisions..................................................................................................2
Dominant Factors in Manufacturing...............................................................................................2
Dominant Factors in Services..........................................................................................................2
Load-Distance Method.......................................................................................................................2
Distance Measures.........................................................................................................................2
Calculating a Load-Distance Score..................................................................................................3
Center of Gravity............................................................................................................................3
Break-Even Analysis............................................................................................................................4
Transportation Method......................................................................................................................4
Setting Up the Initial Tableau..........................................................................................................4
Dummy Plants or Warehouses.......................................................................................................5
Finding a solution...........................................................................................................................5
Geographical Information System......................................................................................................5
The GIS Method for Locating Multiple Facilities.............................................................................5
Inventory Placement..........................................................................................................................5
A systematic Location Selection Process............................................................................................6




1

, Chapter 13 Supply Chain Logistic Networks
Facility Location
The process of determining geographic sites for a firm’s operations.

Distribution center (DC)
A warehouse or stocking point where goods are stored for subsequent distribution to manufacturers,
wholesalers, retailers, and customers.


Factors Affecting Location Decisions
1. The Factor Must Be Sensitive to Location
2. The Factor Must Have a High impact on the Company’s Ability to Meet Its Goals


Dominant Factors in Manufacturing
 Favorable Labor Climate
 Proximity to Markets
 Impact on Environment
 Quality of Life
A factor that considers the availability of good schools, recreational facilities, cultural events,
and an attractive lifestyle
 Proximity to Suppliers and Resources
 Proximity to the Parent Company’s Facilities
 Utilities, Taxes, and Real Estate Costs
 Other Factors


Dominant Factors in Services
 Proximity to Customers
 Transportation Costs and Proximity to Markets
 Location of Competitors
o Critical mass
A situation whereby several competing firms clustered in one location attract more
customers than the total number who would shop at the same stores at scattered
locations
 Site-Specific Factors


Load-Distance Method
Load-Distance Method
A mathematical model used to evaluate locations based on proximity factors.


Distance Measures
Euclidean distance
The straight line distance, or shortest possible path, between two points.
d i= √( xi −x ¿ )2 +( y i− y ¿ )2




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