!! introduction to supply chain design - edxmitx+ctl.sc2x+3t2015...ctl.sc2x - supply chain design...
TRANSCRIPT
![Page 1: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/1.jpg)
MIT Center for Transportation & Logistics
CTL.SC2x -Supply Chain Design
!! Introduction to Supply Chain Design
![Page 2: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/2.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
"#!$%&'!'()*!)!+,--./!0()1%!1+!2!2!2!!
Information (order)
Financial (payment)
Information (status)
2
Physical (delivery)
3'&!&4!5&4#!-)46#+!.1%$#7!8/!)!9&'!&:!4#+&,40#+!;!*/-10)../!5)*#41).<!1%:&45)6&%<!)%7!5&%#/!;!*()*!,.65)*#./!:,.=..!)!0,+*&5#4!4#>,#+*2!!
![Page 3: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/3.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
2!2!2!)%7!*()*!*(#/!1%?&.?#!5,.6-.#!-)46#+!2!2!2!
3
2!2!2!'1*(!0&5-.#@!)%7!%&%A.1%#)4!4#.)6&%+(1-+!2!2!2!
![Page 4: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/4.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
!2!2!2!)%7!*()*!*(#/!0)%!*)$#!5)%/!71B#4#%*!:&45+2!!!
4
Bicycle
Wholesaler
Retailer
Customer
Wholesaler
Retailer
Retailer
Customer
Customer
Customer
Retailer
Hardware Supplier
Frame Supplier
Tire Supplier
Casting Plant
Gear Supplier
Paint Supplier
Pedal Supplier
Supplier
Rubber Mfg
Pigment Supplier
Chemical Mfg
Supplier
Smelter
![Page 5: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/5.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
C,*<!'()*!1+!+,--./!0()1%!7#+1D%E!
5
Image Source: Arntzen, B. MIT Center for Transportation & Logistics, Hi-Viz Research Project (2013)
Information (order)
Financial (payment)
Information (status)
Physical (delivery)
![Page 6: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/6.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
design verb de·sign \di-!z"n\!! to plan and make decisions about (something that is being
built or created) !! to create the plans, drawings, etc., that show how
(something) will be made!! to plan and make (something) for a specific use or purpose
(F-GHH'''25#441)5A'#8+*#420&5H7106&%)4/!
6
design nouna specification of an object (or system), manifested by some agent, intended to accomplish goals, in a particular environment, using a set of primary (or fundamental) components, satisfying a set of requirements, subject to some constraints.
)7)-*#7!:4&5!I).-(<!J2!)%7!")%7<!K2!LMNNOP<!QR!-4&-&+).!:&4!)!:&45).!7#=%16&%!&:!*(#!7#+1D%!0&%0#-*S2!!
"()*!7&!'#!5#)%!8/!Q7#+1D%SE!
![Page 7: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/7.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
"(/!1+!T,--./!U()1%!V#+1D%!15-&4*)%*E!
7
![Page 8: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/8.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
C#0),+#!/&,!()?#!0(&10#+W!•! 3(#4#!)4#!5)%/!71B#4#%*!')/+!*&G!
!! X&4#0)+*!-4&7,0*!7#5)%7!!!! J&+16&%!)%7!5)%)D#!1%?#%*&4/!!! Y&?#!-4&7,0*!8#*'##%!:)01.16#+!!! T#D5#%*!)%7!0&..)8&4)*#!'1*(!0,+*&5#4+!!!! T#.#0*!)%7!'&4$!'1*(!+,--.1#4+!!! Z4D)%1[#!*(#!+,--./!0()1%!:,%06&%!!! T#.#0*!.&0)6&%+!:&4!5)%,:)0*,41%D!)%7!71+*418,6&%!!! #*02!
•! 3(#4#!1+!%&!+1%D.#!8#+*!')/!:&4!)..!+1*,)6&%+!;!#?#%!'1*(1%!)!+1%D.#!=45W!
8
![Page 9: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/9.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
\,10$!I#?1#'G!V#5)%7!X&4#0)+6%D!!"#$%&'()*&+,#-#./(
U,44#%*!L])?#!]1+*&4/P! ^#'!L^&!]1+*&4/P!
01"2*
'(
U,44#%*!
!L])?#!]1+*&4/P! !
!!
^#'
!!L^
&!]1+*&4/P!
!!
!!
Time Series, Exponential Smoothing, Regression
Market Penetration
Forecasting Approach: Quantitative analysis of similar situations
with item using history
Regression of “looks like” items
Product Development
Forecasting Approach: Analysis of similar items: “looks-like”
analysis or analogous forecasting
Customer Panels, Experimental
Market Development
Forecasting Approach: Customer and market analysis to
understand market dynamics and drivers
Delphi, Expert Panel, Scenario Planning, Bass Diffusion
Diversification
Forecasting Approach: Scenario planning & analysis to
understand key uncertainties & factors
Adapted from Kahn, Kenneth (2006) New Product Forecasting. 9
![Page 10: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/10.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
\,10$!I#?1#'G!V#5)%7!X&4#0)+6%D!•! X&4#0)+*+!)4#!).')/+!'4&%D!
!"!_+#!4)%D#+!`!*4)0$!:&4#0)+*!#44&4!•! RDD4#D)*#7!:&4#0)+*+!)4#!5&4#!)00,4)*#!
!"!I1+$!-&&.1%D!4#7,0#+!Ua!!•! T(&4*#4!65#!(&41[&%!:&4#0)+*+!)4#!5&4#!)00,4)*#!
!"!J&+*-&%#!0,+*&51[)6&%!)+!.)*#!)+!-&++18.#!
10
2
1
n
tte
RMSEn
==!
Root Mean Squared Error (RMSE)
et = At – Ft
MAPE =
etAtt=1
n
!n
Mean Absolute Percent Error (MAPE)
1
n
tte
MDn==!
Mean Deviation (MD)
![Page 11: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/11.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
\,10$!I#?1#'G!b%?#%*&4/!Y)%)D#5#%*!J&.10/G!!]&'!5,0(!*&!&47#4!)%7!'(#%!
!
!! cZ\!;!7#*#451%1+60!7#5)%7!'1*(!1%=%1*#!(&41[&%!#! 34)71%D!&B!=@#7!)%7!?)41)8.#!0&+*+!#! Z47#4!\d!#?#4/!3d!65#!-#41&7+!HZ47#4!\d!'(#%!bJefVg!
!! ^#'+?#%7&4!;!?)41)8.#!7#5)%7!&?#4!+1%D.#!-#41&7!#! 34)71%D!&B!+(&4*)D#!)%7!#@0#++!0&+*+!#! Z47#4!\d!)*!+*)4*!&:!-#41&7!'(#4#!Jh@i\jeUI!
11
Horizon
Dem
and
Var
iabi
lity
1 period Infinite 0
!
EOQ
NV ??
![Page 12: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/12.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
\,10$!I#?1#'G!J#41&710!?+2!U&%6%,&,+!Periodic Review (R, S) !! Order S-IP every R periods
S
L Time In
vent
ory
Posi
tion
LR R
Continuous Review (s,Q) !! Order Q if IP " s
Time
Inve
ntor
y Po
sitio
n
s
s+Q
L L
s = µDL + k! DLQ*= 2ctD
ceS = µDL+R + k!DL+R
Q " D*R, s"S, L"L+R
![Page 13: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/13.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
\,10$!I#?1#'G!!34)%+-&4*)6&%!Z-6&%+!
VU!
One-to-One – direct or point to point movements from origin to destination
One-to-Many – multi-stop moves from a single origin to many destinations
VU!
Many-to-Many – moving from multiple origins to multiple destinations usually with a hub or terminal
3!VU!
VU!
13
$, L, !
$, L, !
$, L, !
$, L, !
![Page 14: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/14.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
\,10$!I#?1#'G!3&*).!U&+*!c>,)6&%!
14
TC = cD+ ctDQ!
"#
$
%&+ ce
Q2+ k! DL +DL
!
"#
$
%&+ csP[StockOutType]
•! U&%%#06&%!*&!X&4#0)+6%D!`!34)%+-&4*)6&%!•! X&4#0)+6%D!b5-)0*!;!#@-#0*#7!7#5)%7!)%7!#44&4!•! 34)%+-&4*)6&%!b5-)0*!;!0&+*+!)%7!.#)7!65#!!
•! T#k%D!T):#*/!T*&0$!!!•! T#4?10#!C)+#7!Y#*410+!;!+#*!$!*&!5##*!#@-#0*#7!gZT!•! U&+*!C)+#7!Y#*410+!;!=%7!$!*()*!51%151[#+!*&*).!0&+*+!!
µDL = µLµD ! DL = µL! D2 + µD( )
2! L2
![Page 15: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/15.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
]&'!*&!+#.#0*!*(#!41D(*!7#+1D%E!
15
![Page 16: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/16.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
]&'!7&!/&,!7#017#E!•! T,--./!0()1%!7#+1D%!1+!)%!)4*!`!+01#%0#!
!! R!+01#%0#!8#0),+#!'#!0)%!2!2!2!!#!\,)%6:/!*(#!15-)0*!&:!71B#4#%*!0(&10#+!#!X1%7!*(#!&-65).!*4)7#A&B+!8#*'##%!0&+*+!)%7!+#4?10#!#!T#.#0*!*(#!8#+*!)--4&)0(!D1?#%!0()4)0*#41+60+!&:!-4&7,0*<!+,--.1#4<!0,+*&5#4+<!5)4$#*+<!#*02!!
!! C,*<!1*!1+!+6..!)%!)4*!8#0),+#!2!2!2!#!X,*,4#!1+!+6..!,%0#4*)1%!;!#+-#01)../!:&4!.&%D#4!*#45!#!R++,5-6&%+!4)4#./!(&.7!*4,#!0&5-.#*#./!#!V)*)!)4#!%#?#4!0&5-.#*#./!)00,4)*#!L4#D)47.#++!&:!+#.#0*#7!-4#01+1&%WP!
#!T1*,)6&%+!0()%D#!&?#4!65#!;!+&5#65#+!)84,-*./!!16
![Page 17: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/17.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
T#D5#%*!8/!J4&7,0*!U()4)0*#41+60+!
3%,&4#,1-( 5,,#6146*(V#5)%7! J4#710*)8.#! _%-4#710*)8.#!
g1:#!U/0.#! g&%D!l!M!/4+! T(&4*!mn!/4!
Y)4D1%! op!*&!MNp! MNp!*&!qNp!
a)41#*/! g&'!LnNAMNP! ]1D(!
c44&4!)*!J4&7,06&%! rnNp! rsNAnNNp!
R?D!T*&0$&,*!I)*#+! np!*&!Mp! nNp!*&!sNp!
X&40#7!Y)4$!7&'%! Np! nNp!A!Mop!
g#)7!65#!:&4!Y3Z! q!5&%!*&!n!/4! n!7)/!*&!M!'$+!
T,--./!U()1%!Z8t#06?#! cu01#%0/! Y)*0(!T,--./!`!V#5)%7!
17
Source: Fisher, M. (1997)
![Page 18: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/18.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
3%,&4#,1-( 5,,#6146*(V#5)%7!X&4#0)+6%D!
R--4&)0(!•! 315#!+#41#+!)%)./+1+!'1*(!7#*)1.#7!
*4#%7+!`!+#)+&%).1*/!•! \,).1*)6?#!Y#*(&7+!•! Qg&&$+!.1$#S!)%)./+1+!•! C)++!Y&7#.!
b%?#%*&4/!5)%)D#5#%*!
•! J#41&710!4#?1#'!-&.101#+!•! C,1.7!,-!1%?#%*&4/!:&4!-#)$+!
•! T1%D.#!-#41&7!5&7#.+!!•! X&4')47!-.)0#5#%*!:&4!1%16).!
.),%0(!
34)%+-&4*)6&%!Y)%)D#5#%*!
•! Z0#)%!)%7!X,..!34,0$.&)7!L3gP!•! Y1%15,5!Z47#4!\,)%66#+!*&!VU+!•! U&+*!7&51%)*#+!+-##7!
•! R14<!J)40#.<!)%7!g3g!•! T(1-!714#0*!*&!+*&4#!•! T-##7!7&51%)*#+!0&+*!
18
•! 3(#+#!)4#!714#06&%).!+#D5#%*+!;!%&*!()47!)%7!:)+*!4,.#+!•! Y&+*!=45+!,+#!)!Q-&4v&.1&S!&:!+,--./!0()1%+!*&!8#!+,00#++:,.2!•! X,%06&%).!-4&7,0*+!0)%!8#!Q1%%&?)6?#S!;!%#'!-4&7,0*+<!-4&5&6&%+<!#*02!•! Z?#4!65#<!Q1%%&?)6?#S!-4&7,0*+!0)%!8#0&5#!:,%06&%).!
T#D5#%*!8/!J4&7,0*!U()4)0*#41+60+!
![Page 19: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/19.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
T1*,)6&%+!U()%D#!•! ]1D(!3#0(!U&5-&%#%*+!
!! U&5-,*#4!0(1-+!#!Y)4$#*!()+!+(1w#7!:4&5!JU+!*&!g)-*&-+!*&!3)8.#*+!*&!T5)4*-(&%#+!#! U&+*!&:!0(1-+!1%!T5)4*-(&%#+!1+!r!nHo!*()*!&:!1%!JU+W!
!! Y#5&4/!T*&4)D#!#! J410#!()+!74&--#7!:4&5!n2oN!xHYC!1%!MNNN!*&!N2oq!yHYC!1%!MNno!
•! J()45)0#,60).!b%7,+*4/!!! ^#'!74,D+!)4#!-4&*#0*#7!8/!-)*#%*+!;!#@0.,+1?1*/!!! V4,D+!#?#%*,)../!5&?#!&B!&:!-)*#%*!)%7!D#%#410!5)%,:)0*,4#4+!0)%!*(#%!-4&7,0#!*(#5!
19
![Page 20: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/20.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
317'(8(9:.+(;#7'( 5,'*"<*$:1'*(=*7:.,(
>-#?8@#?(;#7'(
Y)%,:)0*,41%D!g&0)6&%!
Z%!+(&4#!!L#2D2<!_THc,4&-#P!
b%*#4%)6&%).!T(1--1%D!
I)1.H34,0$!
X1%).!R++#58./!g&0)6&%!
Z%!T(&4#!
Z47#4!X,.=..5#%*!g&0)6&%!
Z%!T(&4#!!LX)0*&4/HVUP!
b%?#%*&4/!T*&0$1%D!Y&7#.!
C,1.7!*&!T*&0$!
Original HP Inkjet SC: Early 1990’s
T,--./!U()1%!J&4v&.1&!
20
Source: Olavsun, Lee, & DeNyse (2010) Adapted from Sheffi (2010)
![Page 21: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/21.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
317'(8(9:.+(;#7'( 5,'*"<*$:1'*(=*7:.,(
>-#?8@#?(;#7'(
Y)%,:)0*,41%D!g&0)6&%!
ZB!+(&4#!L#2D2<!U(1%)<!a1#*%)5P!
b%*#4%)6&%).!T(1--1%D!
Z0#)%!
X1%).!R++#58./!g&0)6&%!
Z%!T(&4#!
Z47#4!X,.=..5#%*!g&0)6&%!
Z%!T(&4#!!LX)0*&4/HVUP!
b%?#%*&4/!T*&0$1%D!Y&7#.!
U&%=D,4#!*&!Z47#4!
Postponement Inkjet SC: Late 1990’s
21
T,--./!U()1%!J&4v&.1&!
Source: Olavsun, Lee, & DeNyse (2010) Adapted from Sheffi (2010)
![Page 22: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/22.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
317'(8(9:.+(;#7'( 5,'*"<*$:1'*(=*7:.,(
>-#?8@#?(;#7'(
Y)%,:)0*,41%D!g&0)6&%!
ZB!+(&4#!L#2D2<!U(1%)<!a1#*%)5P!
b%*#4%)6&%).!T(1--1%D!
Z0#)%!
X1%).!R++#58./!g&0)6&%!
ZB!T(&4#!
Z47#4!X,.=..5#%*!g&0)6&%!
Z%!T(&4#!!LX)0*&4/HVUP!
b%?#%*&4/!T*&0$1%D!Y&7#.!
C,1.7!*&!T*&0$!
Cost Competition Inkjet: 2000’s
22
T,--./!U()1%!J&4v&.1&!
Source: Olavsun, Lee, & DeNyse (2010) Adapted from Sheffi (2010)
![Page 23: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/23.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
317'(8(9:.+(;#7'( 5,'*"<*$:1'*(=*7:.,(
>-#?8@#?(;#7'(
Y)%,:)0*,41%D!g&0)6&%!
Z%!+(&4#!!L#2D2<!_THc,4&-#P!
^#)4!+(&4#!!L#2D2<!Y#@10&H!I&5)%1)P!
ZB!+(&4#!!L#2D2<!U(1%)<!a1#*%)5P!
b%*#4%)6&%).!T(1--1%D!
R14!X4#1D(*! I)1.H34,0$! Z0#)%!
X1%).!R++#58./!g&0)6&%!
Z%!T(&4#! ^#)4!T(&4#! ZB!T(&4#!
Z47#4!X,.=..5#%*!g&0)6&%!
Z%!T(&4#!!LX)0*&4/HVUP!
^#)4!T(&4#!LX)0*&4/HVUP!
ZB!T(&4#!!LX)0*&4/HVUP!
b%?#%*&4/!T*&0$1%D!Y&7#.!
C,1.7!*&!T*&0$! U&%=D,4#!*&!Z47#4! C,1.7!*&!Z47#4!
Decision variables for SC Design : (One option is chosen from each column)
T,--./!U()1%!V#+1D%!J&4v&.1&!
23
Source: Olavsun, Lee, & DeNyse (2010) Adapted from Sheffi (2010)
![Page 24: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/24.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
I&)75)-!&:!TUM@!;!T,--./!U()1%!V#+1D%!
24
![Page 25: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/25.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
I&)75)-!:&4!U3g2TUM@!
25
![Page 26: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/26.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
V#+1D%1%D!*(#!J(/+10).!X.&'!•! ]&'!+(&,.7!5)*#41).+!9&'!*(4&,D(!)!+,--./!0()1%E!
!! Y&7#.1%D!*(#!-4&8.#5!#! 34)%+-&4*)6&%!`!34)%++(1-5#%*!J4&8.#5+!!#! X)01.1*/!g&0)6&%!J4&8.#5!!#! T,--./!U()1%!^#*'&4$!V#+1D%!J4&8.#5!!
!! T&.?1%D!*(#!-4&8.#5!#! X1%71%D!*(#!8).)%0#!8#*'##%!0&+*+!)%7!.#?#.!&:!+#4?10#!#! Z-651[)6&%!&:!Y1@#7!b%*#D#4!g1%#)4!J4&D4)5+!
!! b%*#4-4#6%D!)%7!15-.#5#%6%D!*(#!+&.,6&%!#! U&%7,06%D!+#%+16?1*/!)%)./+1+!&:!+&.,6&%+!#! _+1%D!&-651[)6&%!)+!)!7#01+1&%!+,--&4*!*&&.!#! I,%%1%D!%#*'&4$!7#+1D%!-4&t#0*+!1%!*(#!4#).A'&4.7!
26
![Page 27: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/27.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
_%7#4+*)%71%D!*(#!X1%)%01).!X.&'!]&'!*&!*4)%+.)*#!T,--./!U()1%!0&%0#-*+!)%7!)06&%+!2!2!2!
!! b%?#%*&4/!.#?#.+!8/!*/-#!L4)'<!"bJ<!=%1+(#7!D&&7+P!!! X)01.1*/<!#>,1-5#%*<!.)8&4<!&4!+&w')4#H+/+*#5!1%?#+*5#%*+!!! Z,*+&,401%D!?+2!b%+&,401%D!
!2!2!2!1%*&!*(#!.)%D,)D#!&:!*(#!U(1#:!X1%)%01).!Zu0#4!LUXZP2!!! b%0&5#!T*)*#5#%*+!LJ4&=*!`!g&++P!!! C).)%0#!T(##*+!LR++#*+!`!g1)81.16#+P!!! U)+(!X.&'+!L+&,40#+!)%7!,+#+!&:!0)+(!8/!)06?1*/P!
!V1+0,++!3(4##!Y)1%!U&%0#-*+!`!3&&.+!
!! R06?1*/!C)+#7!U&+6%D!!!! "&4$1%D!U)-1*).!!LU)+(A*&AU)+(!U/0.#P!!! V1+0&,%*#7!U)+(!X.&'!R%)./+1+!
27
![Page 28: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/28.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
Y)%)D1%D!*(#!b%:&45)6&%!X.&'!
>#%"&*G!!"#$%&'((
)%*+(,-../%0#,(•! J4&0,4#5#%*!5#*(&7+<!&8t#06?#<!`!+*4)*#D1#+!!
•! R,06&%+!A!'(/!`!(&'!•! Z-651[#7!-4&0,4#5#%*!•! I1+$!+()41%D!`!+,--./!0&%*4)0*+!
!28
T,--.1#4+!
=*-:6*"(012*(>#%"&*(
U,+*&5
#4+!
012*G!1""#2%&34&'((53&-637*-#%&'((
•! J4&7,06&%!-.)%%1%D!•! C1..!&:!Y)*#41).!LCZYP!•! X1@#7!(&41[&%!-.)%%1%D!-4&8.#5!
•! Y)*#41).HV1+*418,6&%!I#+&,40#!J.)%%1%D!LYIJHVIJP!+/+*#5+!!
!
=*-:6*"G!1"//38"#34&'()%*+(1-,*"50#,(
•! U()..#%D#+!`!&8+*)0.#+!•! C,..'(1-!#B#0*!!•! U,+*&5#4!0&..)8&4)6&%!-4&D4)5+!LUJXI<!aYb<!#*02P!
•! T).#+!`!Z-#4)6&%+!J.)%%1%D!LT`ZJP!!
!Source: Supply-Chain Operations Reference
(SCOR) Model from Supply Chain Council
![Page 29: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/29.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
V#+1D%1%D!*(#!Z4D)%1[)6&%!
•! ]&'!+(&,.7!)!+,--./!0()1%!8#!&4D)%1[#7E!!! C,+1%#++!`!T,--./!U()1%!J4&0#++#+!
#!]&'!+(&,.7!'#!5)-!-4&0#++#+E!#!]&'!0)%!'#!15-4&?#!&4!4#A#%D1%##4!*(#+#!-4&0#++#+E!
!! J#4:&45)%0#!Y#*410!T/+*#5+!#!]&'!*&!5#)+,4#!+,--./!0()1%!-#4:&45)%0#E!#!]&'!*&!#+*)8.1+(!5#*410+!)%7!5#*410!+/+*#5+E!
!! Z4D)%1[)6&%).!T*4,0*,4#!#!]&'!+(&,.7!*(#!+,--./!0()1%!:,%06&%!8#!&4D)%1[#7E!#!"(#%!)%7!'()*!*&!0#%*4).1[#H7#0#%*4).1[#E!
29
![Page 30: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/30.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
I&)75)-!:&4!U3g2TUM@!
30
5 Lessons
4 Lessons
8 Lessons
2 Lessons
![Page 31: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/31.jpg)
MIT Center for Transportation & Logistics
CTL.SC2x -Supply Chain Design
Questions, Comments, Suggestions? Use the Discussion!
“Wilson’s excited to get started – I hope you are too!”
Yankee Golden Retriever Rescued Dog (www.ygrr.org)
![Page 32: !! Introduction to Supply Chain Design - edXMITx+CTL.SC2x+3T2015...CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design design verb de·sign \di-!z"n\!! to plan](https://reader035.vdocuments.mx/reader035/viewer/2022062413/5acef23b7f8b9a8b1e8c19fc/html5/thumbnails/32.jpg)
CTL.SC2x - Supply Chain Design Lesson: Introduction to Supply Chain Design
b5)D#+!`!I#:#4#%0#+!•! T.17#!o!
!! R4%*[#%<!C2!Yb3!U#%*#4!:&4!34)%+-&4*)6&%!`!g&D1+60+<!]1Aa1[!I#+#)40(!J4&t#0*!LMNnzP!!
•! T.17#+!n{!`!n|!!!! X1+(#4<!Y2!LnOO{P!Q"()*!b+!*(#!I1D(*!T,--./!U()1%!:&4!K&,4!J4&7,0*E<S!])4?)47!C,+1%#++!I#?1#'2!!!! C/!C).&,D)7&4!LZ'%!'&4$P!h}XVg!L(F-GHH'''2D%,2&4DH0&-/.#wH:7.2(*5.P!&4!UUACKATRAz2N!L(F-GHH
04#)6?#0&55&%+2&4DH.10#%+#+H8/A+)Hz2NHPj<!(F-GHH0&55&%+2'1$15#71)2&4DH'1$1HX1.#pzRU)5-8#..+Y&71:2-%D!!! C/! !LZ'%!'&4$P!h}Jg!L(F-GHH'''2D%,2&4DH.10#%+#+HD-.2(*5.P<!}XVg!L(F-GHH'''2D%,2&4DH0&-/.#wH:7.2(*5.P!&4!
UUACKATRAz2NAM2oAM2NAn2N!L(F-GHH04#)6?#0&55&%+2&4DH.10#%+#+H8/A+)Hz2NPj<!!!!(F-GHH0&55&%+2'1$15#71)2&4DH'1$1HX1.#pzRT5)4*~-(&%#2t-D!
•! T.17#+!MNAMz!!!! Z.)?+,%<!g##<!`!V#^/+#!LMNnNP!QR!J&4v&.1&!R--4&)0(!*&!T,--./!U()1%!V#+1D%<S!!T,--./!U()1%!Y)%)D#5#%*!I#?1#'2!!
R7)-*#7!:4&5!T(#u!LMNnNP!cTV2MqN!U&,4+#!^&*#+!!! Q]-oNNAn�!8/!ZD,#%*(#4!A!Z'%!'&4$2!g10#%+#7!,%7#4!U4#)6?#!U&55&%+!RF418,6&%AT()4#!R.1$#!z2N!?1)!"1$15#71)!
U&55&%+!A!(F-GHH0&55&%+2'1$15#71)2&4DH'1$1HX1.#G]-oNNAn2-%DÄ5#71)?1#'#4HX1.#G]-oNNAn2-%D!!! �]-A7#+$t#*A|Oo0@1�2!g10#%+#7!,%7#4!U4#)6?#!U&55&%+!RF418,6&%AT()4#!R.1$#!z2N!?1)!"1$15#71)!U&55&%+!A!(F-GHH
0&55&%+2'1$15#71)2&4DH'1$1HX1.#G]-A7#+$t#*A|Oo0@12t-DÄ5#71)?1#'#4HX1.#G]-A7#+$t#*A|Oo0@12t-D!!! �YX]JnqNN�!8/!g,-1+TY!A!Z'%!'&4$2!g10#%+#7!!,%7#4!!U4#)6?#!U&55&%+!RF418,6&%AT()4#!R.1$#!z2NAM2oAM2NAn2N!?1)!
"1$15#71)!U&55&%+!A!(F-GHH0&55&%+2'1$15#71)2&4DH'1$1HX1.#GYX]JnqNN2ÅJ}Ä5#71)?1#'#4HX1.#GYX]JnqNN2ÅJ}!
•! T.17#!zn!!! J(&*&!8/!-#451++1&%!&:!"1.+&%!*(#!V&D2!
32