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Choprascm5ch05 150901035425 Lva1 App6892 PDF
Choprascm5ch05 150901035425 Lva1 App6892 PDF
Network Design in
the Supply Chain
1-1
5-1
Learning Objectives
1. Understand the role of network design in a
supply chain.
2. Identify factors influencing supply chain
network design decisions.
3. Develop a framework for making network
design decisions.
4. Use optimization for facility location and
capacity allocation decisions.
1– b – a 1+ b – a
d1 = a + and d2 =
2 2
Figure 5-3
åx ij
= D j for j = 1,...,m
i=1
m
åx ij
= K i yi for i = 1,...,n
j=1
Figure 5-4
Figure 5-5
Figure 5-5
Figure 5-6
(x, y) is the location selected for the facility, the distance dn between
the facility at location (x, y) and the supply source or market n is given
by
(x – x ) + ( y – y )
2 2
dn = n n
Figure 5-7
Figure 5-8
Figure 5-8
Dn Fn Dn Fn
å d å d
n=1 n n=1 n
K i = capacity of factory i
cij = cost of producing and shipping one unit from factory i to market j
n m subject to
Minå å cij xij n
i=1 j=1 åx ij
= D j for j = 1,...,m
i=1
m
åx ij
= Ki for i = 1,...,n
j=1
TelecomOne Baltimore 0 8 2
Memphis 10 0 12
Wichita 0 0 0
Cheyenne 6 7 0
Table 5-3
n n m
Minå f i yi + å åc x ij ij
i=1 i=1 j=1
Figure 5-9
Figure 5-10
Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall. 5-30
Capacitated Plant Location Model
Figure 5-10
Figure 5-11
åx ij
= 1 for j = 1,...,m
i=1
m
åD x i ij
£ K i yi for i = 1,...,n
j=1
xij , yi Î {0,1}
Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall. 5-33
Capacitated Model With
Single Sourcing
Figure 5-12
Cheyenne Closed 0 0 0 0 0 0
Memphis Open 10 8 0 0 0 0
Wichita Open 0 0 14 0 7 0
Table 5-4
Figure 5-13
n t l n t m
Minå Fi yi + å f e ye + å å chi xie + å å cej xej
i=1 e=1 h=1 i=1 e=1 j=1
n m
åx hi
£ Sh for h = 1,...,l åx ej
£ We ye for e = 1,...,t
i=1 j=1
l t t
åx hi
– å xie ³ 0 for i = 1,...,n åx ej
= D j for j = 1,...,m
h=1 e=1 e=1
t
åx ie
£ Ki yi for i = 1,...,n yi , ye Î {0,1},xej ,xie ,xhi ³ 0
e=1
n m
åx – åx ie ej
³ 0 for e = 1,...,t
i=1 j=1
åx ij
£ D j for j = 1,...,m
i=1