Supply chain managment

These are the models

5. CHAPTER 5. We would like to open one facility in Asia or Africa. Which is the best decision ? 6. CHAPTER 5. You can expect many questions about the following framework. - input, output of each model - difference between model 1 in phase 2 and the same model in phase 4, - difference between models 1 and 3)Framework for Network Design Decisions - explain the model 2 Phase II: Network Optimization Models Obiective: decide on the regional (different regions; Zonex, countries, contincnts) facilitiesicapacities and how they will serve the different markets MODEL\#1 Number and capacities of facilities One plant per region (sized to meet local demand), or better to consolidate The Capacitated Plant Location Model n= number of potential plant locations/capacity (each level of capacity will count as a separate location) m= number of markets or demand points Dj= annual demand from market j Ki= potential capacity of plant i fi= annualized fixed cost of kecping plant i open cij=cost of producing and shipping one unit from plant i to market j (cost includes production, inventory, transportation, and tariffs) yl=1 if plant i is open, 0 otherwise xij= quantity shipped from plant i to market j Mini=1nfiyi+i=1nj=1mcijxij i=1nxij=Djforj=1,mj=1mxijKiyifori=1,,nyi{0,1}fori=1,,n,xij0 Phase III: Gravity Methods for Location Gravity Location Model onbiestive Find the best facility location for every region (nones, countries; continents) in which a decision to open a facility has been taken in Phase II best one (found in phase III) and pick the site to be used. useful) d Precise location (Barycenter technique is useful) regarding the availability of services - and predefined capacity One from the gravity method potential sites around respecting the requirements Phase III: Gravity Methods for Location Ton Mile-Center Solution x,y : Warehouse Coordinates xnyn: Coordinate location of either a market or supply source n dn : Distance between the facility at location (x,y) and the supply source or market n is given by Fn : Cost of shipping one unit for one mile between the facility and either market or supply source n Dn : Quantity to be shipped between facility and market or supply n dn=(xxn)2+(yyn)2MinTC=n=1kdnDnFn If plants are already selected MODEL\#3 n=numberoffactorylocationsm=numberofmarketsordemandpointsDj=annualdemandfrommarketjKi=capacityoffactoryicij=costofproducingandshippingoneunitfromfactoryitomarketji=1nxij=Dj,j=1,,mxij=QuantityshippedfromMini=1nj=1mcijxijs.t.plantsiteitocustomerjj=1mxijKi,i=1,,nxij0