Industry experts in redesigning supply chain networks. Supply chain network processes help in evaluating the manufacturing, distribution, supply, and sales networks. Nov 19, 2012 free book supply chain network design. A supply chain network can be strategically designed in such a way as to reduce the cost of the supply chain. This paper proposes improving the distribution function of the supply chain by employing hub. Supply chain network design choices and the challenges in implementing and understanding how alternatives influence firm performance are key management skills that can be applied to the case of a global company, kulicke and soffa industries, inc. The focus of supply chain engineering is the engineering design and planning of supply chain systems. Few other supply chain initiatives offer the kind of improvement potential that a network effort can bring. This book takes a very technical subject and makes it possible for managers and students alike to understand all aspects of network design. At a strategic level the design and leadership of such networks is crucial to the effectiveness and efficiency of the associated supply chains. What is supply chain network design and how does it work. Now, experts at ibm and northwestern university have brought together both. This book is perfect for people designing a supply chain from a bussiness perspective and draws a clear methodology to accomplish this task. The distribution function in a supply chain is an important internal service function for any firm, and has been increasingly recognized as playing a strategic role in achieving competitive advantage.
Supply chain network design and location intelligence. So it was welcome and timely when a new book titled supply chain network design. Supply chain network design ive done a lot of supply chain network design projects and consider myself to be an expert. Supply chain network design is the process of building and modeling a supply chain to better understand the costs. The network planning functions provide methods for evaluating the current. A firms supply chain allows it to move product from the selection from supply chain design collection book. The role of distribution in supply chain distribution refers to the steps to move and store a product from the supplier stage to customer stage in the supply chain. Operations management and supply chain network theory.
Network design decisions in supply chain planning 11 the last two categories of decision variables inventory and routing have re ceived increasing attention in the last decade. Kulicke and soffa industries, inc designing a supply. Supply chain design is being used to match the supply and demand under uncertainty by positioning and managing inventory. More supply chain leaders in cpg companies are intent on optimizing. The value of supply chain network design what is supply chain network design and why is it important. There exists a very large variety of supply chain system types, all with different goals. The distribution function in a supply chain is an important internal service function for any firm, and has been increasingly recognized as playing a strategic role in achieving competitive. Pdf this study eventually synthesises and proposes a new algorithm for a customer to a customer supply chain management system.
Applying optimization and analytics to the global supply chain ft press operations management watson, michael, lewis, sara, cacioppi, peter, jayaraman, jay on. And, when firms do it right, they can reduce supply. Pdf a customerbased supply chain network design researchgate. What is supply chain network design and why is it important. Supply chain network design scnd is the process concerned with determining logistics infrastructure over an extended planning horizon to provide the most effective strategic solution in terms of cost andor service. Because of the supply chain complexities and rich set of quantitative data we have discussed, mathematical optimization. The book is ideal for supply chain managers, analysts, and consultants who must do these studies, for people who work for the a company or organization with a supply chain and want to understand the design and strategy better, and for professors who want to bring a practical and intellectually interesting material to the classroom. Its often useful to think about your supply chain as a network. And lastly, sustainability in modern supply chain networks. No current book covers the theory and practice in a way that ensures readers will be successful with this discipline in the field. The whole book is based in the concept of tradeoffs in a supply chain as a main design guide, instead of detailed technical considerations regarding network theory. Almost all supply chain professionals need to know about this discipline.
Supply chain network design guide books acm digital library. It is important to recognize that a companys network determines its supply chain efficiency and customer satisfaction. As companies grow, supply chain efficiencies are impacted due to the changes in demand and supply patterns. Mar 20, 2017 this feature is not available right now. Supply chain management scm is a rapidly growing area of studyand network design is one of the fastest growing areas within scm. Kulicke and soffa industries, inc designing a supply chain. Now, experts at ibm and northwestern university have brought together both the rigorous principles and the practical applications you need to master. Supply chain network design enterprise supply chain. Take these supply chain considerations for example. As the figure shows, every stop that a product makes between raw materials and a customer is a node of the network. Lets get started by establishing a positive mindset to examining your current supply. Understanding the optimization behind supply chain design projects by watson. Had i had this book from the start, i may have got to expert status a lot faster.
Michael watson, one of the industrys foremost experts on supply chain network design and advanced analytics, is a columnist and subject matter expert sme for supply chain digest. Supply chain engineering marc goetschalckx springer. The value of supply chain network design supply chain. Pdf network design decisions in supply chain planning. What you need is a technology that has a powerful analytics engine, but is nimble enough to adapt. In a supply chain context, this means not maximizing margins, availability and service levels. Using strategic supply chain network design, companies can achieve dramatic savings from their supply chains. This chapter provides an introduction to supply chain network design. Designing distribution networks and applications to ebusiness the role of distribution in the supply chain factors influencing distribution network design design options for a distribution network ebusiness and the distribution network. Every organisation is part of a wider interconnected. It should be clear by now that the supply chain network design problem is just as much about geography as it is about business strategy. Supply chain network design educational information and. Applying optimization and analytics to the global supply chain arrived in my mailbox.
This paper reports on the integrated supply chain network design with radiofrequency identification rfid technology. Solving the quantitative aspects of the problem using. Supply chain network design will help students, academics, and practitioners alike understand the importance of successfully designing and optimizing a global supply chain network, while also explaining in easytounderstand steps how to make it happen. On completion of this module, learners will be able to evaluate the strategic nature, influence and contribution of supply network design and operations to overall business strategy and assess the strategic value of resource planning and control. Network design is important because a good design helps a firm execute its strategy. As the figure shows, every stop that a product makes between raw. Most business units or functional areas within a company are impacted by a network design. Jul 01, 2012 using strategic supply chain network design, companies can achieve dramatic savings from their supply chains. Now, experts at ibm and northwestern university have. Supply chain network design due to the significant impact that supply chain design has on the cost and service provided by a company, it is critical that managers be knowledgeable about how to optimize the flow of products and goods within their supply chain. Ive done a lot of supply chain network design projects and consider myself to be an expert.
Michael watson, one of the industrys foremost experts on supply chain network design and advanced analytics, is a columnist and subject matter expert sme for supply chain digest dr. The key costs associated with your current supply chain network design. Supply chain network design is a systematic approach to determining the best location and optimal size of the facilities to be included in the supply chain, and to ensure an optimal flow of. Contributors, all supply chain experts with real world experience, clearly define supply chain management, identify those factors that contribute to effective supply chain management, and suggest how the adoption of a supply chain management approach can affect business strategy and corporate performance. Network design in supply chain management emerald insight. Solving the quantitative aspects of the problem using optimization. Zhang, dong, and nagurney 2003 generalized wardrops. The third section of the book is focused on storing goods, and the last section of the book is focused on supply chain systems that consider simultaneously procurement, production, and transportation and inventory as well as the design of the supply chain infrastructure or network design. What you need is a technology that has a powerful analytics engine, but is nimble enough to adapt when it needs to. For all supply chain executives, managers, strategists, and analysts. Supply chain network design combines best practices, the latest methods in optimization and analytics, and cuttingedge case studies. Our first objective in this book is for the reader to learn the strategic importance of good supply chain design, planning, and operation for every firm. I network theory in order to identify the structure of the supply chain and relationships i optimization theory in order to capture the decisionmakers criteria in the form of objective functions, the decision.
Youll learn how to use supply chain network design to select the right number, location, territory, and size of. The strategic role of the supply chain key drivers of supply chain performance analytical tools and techniques for supply chain analysis. Designing an optimal supply chain network means the network must be able to meet the long. Supply chain network design scnd is the process concerned with determining logistics infrastructure over an extended planning horizon to. This book is aimed at an important and underserved niche within the supply chain market. The role of distribution in supply chain distribution.
Designing supply chain network for each industry involves arriving at a satisfactory design framework taking into all elements like product, market, process, technology, costs, external environment and factors and their impact on the business. A firms supply chain allows it to move product from the source to the final point of consumption. Applying optimization and analytics to the global supply chain, by sara lewis, michael watson. Michael watson, formerly of ibm and now full time at northwestern university, and sara lewis, peter cacioppi, and jay jayaraman, all of ibm.
Supply chain network theory supply chain network theory is an integrated theory that includes. Applying optimization and analytics to the global supply chain arrived in my mailbox, courtesy of my friend dr. Supply chain design is the process by which a company structures and manages the supply chain in order to identify the right balance between inventory, transportation, and manufacturing cost. Part ii designing the supply chain network chapter 4 designing distribution networks and applications to omnichannel retailing 69 factors affecting distribution. Supply chain network design choices and the challenges in implementing and understanding how alternatives influence firm performance are key management skills that. To do it right, it requires analytics and optimization.
A few essential steps for forwardthinking network design optimization. Supply chain network design considering rfid adoption ieee. Understanding the optimization behind supply chain design projects kindle edition by watson, michael, hoormann, sara, cacioppi, peter, jayaraman, jay. Finally, in supply chain network design, four leading ibm and northwestern university experts show how to use strategic supply chain network design to achieve dramatic new savings. Supply chain strategy and consulting supply chain network design drive business growth with a strategic supply chain network.
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