Production and Operation Managements Scheduling in Supply Chain Management Professor JIANG Zhibin Dr GENG Na Department of Industrial Engineering Management Shanghai Jiao Tong University
Production and Operation Managements Professor JIANG Zhibin Dr GENG Na Department of Industrial Engineering & Management Shanghai Jiao Tong University Scheduling in Supply Chain Management
Scheduling in Supply Chain Management Contents Introduction Transportation Problem Generalizations of the Transportation; More General Network Formulations Distribution Resources Planning; Determining Delivery Routes in Supply Chain The role of information in the sCm
Scheduling in Supply Chain Management Contents • Introduction • Transportation Problem • Generalizations of the Transportation; • More General Network Formulations • Distribution Resources Planning; • Determining Delivery Routes in Supply Chain • The Role of information in the SCM
Supply Chain What is Supply Chain? Tier 3 Tier 2 Tier 1 Suppliers Suppliers Suppliers Warehouse →2 Customers 大鱼 Big fish Store 小鱼 Small 53 fish Factory Distribution Store 浮游生物 Center Plankton Information Store 绿藻 alga Nitrogen Factory Warehouse Store Distribution & Center 氨和磷 phosphor 52 Store Marine food chain Raw material Manufactu- Distributer Retailer Users supplier rer
Supply Chain What is Supply Chain? Nitrogen & phosphor alga Plankton Small fish Big fish Marine food chain Raw material supplier Manufacturer Distributer Retailer Users
Supply Chain Management Manage what? materials,information and financial flows a network consisting of suppliers,manufacturing,distributors,and customer within the enterprise and outside the firm's allied business partners How? efficiently integrate suppliers,manufactures,warehouses,and stores synchronizing the flow of marketplace products,services,and information. Objective produce and distribute at the right quantities,to the right locations,and at right time (3R) minimize system wide costs while satisfying service level requirements highly competitive,customer-enriching supply system to create unique,individualized sources of customer value
Supply Chain Management Manage what? • materials, information and financial flows • a network consisting of suppliers, manufacturing, distributors, and customer • within the enterprise and outside the firm’s allied business partners How? • efficiently integrate suppliers, manufactures, warehouses, and stores • synchronizing the flow of marketplace products, services, and information. Objective • produce and distribute at the right quantities, to the right locations, and at right time (3R) • minimize system wide costs while satisfying service level requirements • highly competitive, customer-enriching supply system • to create unique, individualized sources of customer value
Introduction The Definition of Supply Chain Management (SCM) Hau-Lee,the head of Stanford Supply Chain Forum (1999): SCM deal with the management of materials,information and financial flows in a network consisting of suppliers, manufacturing,distributors,and customer. Simchi-Levi et al.(1999,p1):SCM is a set of approaches utilized to efficiently integrate suppliers,manufactures, warehouses,and stores,so that merchandise is produced and distributed at the right quantities,to the right locations,and at right time,in order to minimize system wide costs while satisfying service level requirements
Introduction The Definition of Supply Chain Management (SCM) • Hau-Lee, the head of Stanford Supply Chain Forum (1999): SCM deal with the management of materials, information and financial flows in a network consisting of suppliers, manufacturing, distributors, and customer. • Simchi-Levi et al.(1999,p1): SCM is a set of approaches utilized to efficiently integrate suppliers, manufactures, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at right time, in order to minimize system wide costs while satisfying service level requirements
Introduction SCM is a continuously evolving management philosophy Seeks to unify the collective productive competencies and resources of business functions found both within the enterprise and outside the firm's allied business partners located along intersecting supply channels into highly competitive,customer-enriching supply system Focused on developing innovative solutions and synchronizing the flow of marketplace products, services,and information to create unique, individualized sources of customer value
Introduction SCM is a continuously evolving management philosophy ; Seeks to unify the collective productive competencies and resources of business functions found both within the enterprise and outside the firm’s allied business partners located along intersecting supply channels into highly competitive, customer-enriching supply system Focused on developing innovative solutions and synchronizing the flow of marketplace products, services, and information to create unique, individualized sources of customer value
Management philosophy Information,service,materials,financial flow along intersecting supply channels 。 Integrate resource;synchronizing the flow Objective: Competitive supply system Customer value added supply system
Management philosophy • Information, service, materials, financial flow • along intersecting supply channels • Integrate resource; synchronizing the flow Objective: • Competitive supply system • Customer value added supply system
Introduction The Supply Chain as a Strategy Weapon 0 The design of supply chain reflects a firm's strategic positioning;(low cost /fast response) Supply chain trade off between cost and response time; Third party logistic (3PL)is becoming more common Less expensive to subcontract logistics than to do it in- house. Maintain core competency SCM make it possible to move product quickly and efficiently so as to gain an edge over their competitors; (Outsourcing) New technologies will trim costs from the supply chain without compromising service
Introduction The Supply Chain as a Strategy Weapon • The design of supply chain reflects a firm’s strategic positioning; (low cost /fast response) • Supply chain trade off between cost and response time; • Third party logistic (3PL) is becoming more common Less expensive to subcontract logistics than to do it inhouse. Maintain core competency • SCM make it possible to move product quickly and efficiently so as to gain an edge over their competitors; (Outsourcing) • New technologies will trim costs from the supply chain without compromising service
Transportation Problem The transportation problem is a mathematical model for optimally scheduling the flow of goods from production factories to distribution centers. The transportation problem can be viewed as prototype supply chain problem Example 6.1 The Pear Disk Corp.produces 8GB drives in three plants and supply four distribution centers.The production capacities for the three factories in the next month are 45,000,120,000,and 95,000.The amounts shipped to the four DCs.are 80,000, 78,000,47,000,and 55,000.The unit cost for shipping 1,000 units drives from each plant to each warehouse is given.The goal is to determine a pattern of shipping that minimize the total transportation costs
Transportation Problem • The transportation problem is a mathematical model for optimally scheduling the flow of goods from production factories to distribution centers. • The transportation problem can be viewed as prototype supply chain problem Example 6.1 The Pear Disk Corp. produces 8GB drives in three plants and supply four distribution centers. The production capacities for the three factories in the next month are 45,000, 120,000, and 95,000. The amounts shipped to the four DCs. are 80,000, 78,000, 47,000, and 55,000. The unit cost for shipping 1,000 units drives from each plant to each warehouse is given. The goal is to determine a pattern of shipping that minimize the total transportation costs
Transportation Problem Plants Warehouses 45 80 250 回回后面 Sunnyvale 420 380 Amarillo 280 78 国日口a 120 Teaneck 47 Dublin 面日口a Chicago 95 55 国口回运 国里▣ Bangkok Sioux Falls Fig.6-2 Pear Disk Drive Transportation Problem
Transportation Problem Fig.6-2 Pear Disk Drive Transportation Problem 80 78 47 55 45 120 95 250 420 380 280
