chapter 6-scm_s06.ppt

8/18/2019 Chapter 6-SCM_S06.ppt

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Chapter 6: Supply ChainManagement (SCM)

IE 3265 – POM

R. R. in!e"e#M$%MIE


2/54

&'pi *'r $iui'n: $e+ning the iue ', SCM Ma-'r Player

'/ /e an /'r" in thi ne/ m'!el 0en!er relati'nhip $ata Management

Ma-'r Iue: 1ull/hip eet &ranp'rtati'n pr'lem 'ati'n iue


3/54

4hat i SCM Supply Chain management !eal /ith the 'ntr'l ',

material7 in,'rmati'n7 an! +nanial 8'/ in a net/'r"'niting ', upplier7 manu,aturer7 !itriut'r7 an!ut'mer9 (Stan,'r! Supply Chain *'rum 4eite)

Call it !itriuti'n 'r l'giti 'r upply hainmanagement... In in!utry a,ter in!utry . . . eeuti;eha;e plu"e! thi 'ne !imal !iipline ' the l'a!ing

!'" an! plae! it near the t'p ', the 'rp'rateagen!a. ar!%pree! t' "n'" 'ut 'mpetit'r 'n


4/54

@r'/ing Interet in SCM – 4hy A manu,aturing e'me m're

eBient ('r i 'ut'ure!)7 'mpaniel''" ,'r /ay t' re!ue 't

Se;eral igni+ant ue t'rie: EBient SCM at 4almart7 P7 $ell C'mputer

SCM 'ni!er the r'a!7 integrate!7;ie/ ', material management ,r'm

purhaing thr'ugh !itriuti'n &he huge gr'/th ', interet in the /e

ha pa/ne! /e%ae! m'!el ,'rupply hain: ,r'm !'t 'm9 retailer

t' 1%2%1 uine m'!el


5/54

Ma Cut'miati'n:$eigning *inal Ch'ie int' Supply

Chain Se;eral 'mpanie ha;e een ale t'

ut 't an! impr';e er;ie y

p'tp'ning the +nal 'n+gurati'n ', thepr'!ut until the latet p'ile p'int inthe upply hain. Eample: e/lett Pa"ar! printer 'n+gurati'n

P'tp'nement ', +nal pr'gramming ',emi'n!ut'r !e;ie – all r'utine l'a!e!7'nly ertain 'ne ati;ate!

Aemle t' 'r!er rather than aemle t't'" ($ell C'mputer)


6/54

$eign *'r 'giti: Many +rm n'/ 'ni!er SCM iue in

the !eign phae ', pr'!ut !e;el'pment

One eample i IDEA /h'e ,urniture'me in imple t' aemle "it thatall'/ them t' t're the ,urniture in theame /areh'ue%li"e l'ati'n /herethey are !iplaye! an! 'l!

Shipping 'ntainer !eign ,'r *e!E an!#PS – air,reight $unnage 'ntr'l in 1ig Aut'


7/54

EBient $eign ', the Supplier

1ae

Part ', treamlining the upply hain ire!uing the numer an! ;ariety ',

upplier &he apanee ha;e een ;ery ue,ul in

thi arena (theyFre an Ilan! – ' gettingmaterial there ha al/ay een a pr'lem)

In the mi! =>GHF er' trimme! itnumer ', upplier ,r'm 57HHH t' ?HH.

O;erea upplier /ere h'en ae! 'n 't 'al upplier /ere h'en ae! 'n !eli;ery

pee!

In =>>67 *'r! M't'r re!ue! their upplier

'unt y m're than 6HJ


8/54

$ell $eign the #ltimate SupplyChainK

$ell C'mputer ha een 'ne ', them't ue,ul PC retailer. 4hy &'

'l;e the pr'lem ', in;ent'rye'ming ''lete7 $ellF 'luti'n: $'nFt "eep any in;ent'ryK % All PCF are

ma!e t' 'r!er an! part hippe! !iretly,r'm manu,aturer /hen p'ile.

C'mpare t' the eperiene ', C'mpa<C'rp'rati'n – initial ue ellingthr'ugh l'/ 't retail /areh'ue utthey !i! n't garner /e%ae! ale


9/54

$ata Ehange – A Critial I!ea E$I: Eletr'ni $ata Interhange In;'l;e the &ranmii'n ',

!'ument eletr'nially in apre!etermine! ,'rmat ,r'm 'mpanyt' 'mpany. (L't /e ae!.)

&he ,'rmat are 'mple an!

epeni;e. It appear t' e 'n the!eline a /e%ae! ytem gr'/.


10/54

$ata an! Pr'!ut – E%

&ailing E-tailing: $iret t' ut'mer ale 'n the

/e – the '%alle! Cli" M'rt'r retailm'!el Perhap et "n'/n e%tailer i Ama'n.'m7

'riginally a /e%ae! !i'unt ''" eller &'!ay7 Ama'n.'m ell a /i!e range ',

pr'!ut (/e an thin" ', many7 many imilar'rganiati'n)

Ama'n an! 'ther pa/ne! ' alle! !'t'm9 t'" epl'i'n in the LAS$AN (=>>t' April7 2HHH)

&'!ay7 many tra!iti'nal ri" an! m'rtar9retailer al' 'er ale ';er the /e7 ',ten

at l'/er prie


11/54

$ealing /ith $ata – the m'!ern

/ay B2B (business to business) upply hain

management:

4hile n't a ;iile an! ey9 a E%tailing7 itappear that 121 upply hain managementi the true gr'/th in!utryK

4e earhe yiel! ';er GH mathe ,'rupply hain ',t/are pr';i!er. S'me ', thema-'r player in thi mar"et egment inlu!e: Agile Software ae! in Sili'n 0alley. i2 Technologies ae! in $alla. Ariba ae! in Sili'n 0alley


12/54

$ata &ran,er in Supply Chain:0en!'r Manage! In;ent'ry (the real

'luti'n) 4almart an! P @ &arget an! PepiC'"e

1ut Q 1arilla SpA. An Italian pata pr'!uerpi'neere! the ue ', 0MI (0en!'r Manage!In;ent'ry)

&hey 'taine! ale !ata !iretly ,r'm!itriut'r an! !ei!e 'n !eli;ery ie ae!

'n that in,'rmati'n &hi i in 'pp'iti'n t' all'/ing !itriut'r ('r

e;en retailer) t' in!epen!ently !ei!e 'n'r!er ieK


13/54

Or!er @r'/th – &he 1ull/hip

Eet – An Imp'rtant iue


14/54

In,'rmati'n &ran,er in SupplyChain: aue ', &he 1ull/hip

EetF *irt n'tie! y P@ eeuti;e eamining

the 'r!er pattern ,'r Pamper !ip'ale!iaper.

&hey n'tie! that 'r!er ;ariati'ninreae! !ramatially a 'ne m';e! ,r'mretailer t' !itriut'r t' the ,at'ry.

&he aue are n't 'mpletely un!ert''!

ut ha;e t' !' /ith athing ', 'r!er an!uil!ing in a,ety t'" at eah le;el Pr'lem: inreae the !iBulty ',

planning at the ,at'ry le;el


15/54

&here ha een a Re;italiati'n inthe Analytial &''l nee!e! t'

Supp'rt SCM In;ent'ry management an! !eman!

,'reating m'!el uh a th'e !iue!

in thi 'ure &he tranp'rtati'n pr'lem an! m're

general net/'r" ,'rmulati'n ,'r !eriing8'/ ', g''! in a 'mple ytem

Analytial meth'! ,'r !etermining !eli;eryr'ute ,'r pr'!ut !itriuti'n – 'ptimall'ati'n ', ne/ re'ure


16/54

*'uing 'n the $itriuti'n

Pr'lem: &he @'al i t' re!ue t'tal

tranp'rtati'n 't thr'ugh'ut

the upply hain #ually 'l;e! /ith 'me appr'ah

t' the &ranp'rtati'n Pr'lem9

Our appr'ah /ill e the 1alane!Matri m'!el


17/54

et !' 'ne7 y eample:

&'

*r'mAlu


18/54

In the &ranp'rtati'nPr'lem:

4e mut ha;e a Supply$eman!alane t' 'l;e In thi pr'lem that re


19/54

&he &ranp'rtati'npr'lem:

@'al i t' minimie the t'tal 't ', hipping

4e /ill all'ate pr'!ut t' ell – any

all'ati'n mean the r'/ re'ure /ill hippr'!ut t' the 'lumn !eman!

&he pr'e i an iterati;e 'ne that re


20/54

Starting /ith a 0AMS'luti'n tehni


21/54

Phae = ', 0AM:

Step A 1 C PLr= PLr2 PLr3

$M T5

=HH

T? T3 = %'ut %% %%

E TG T?2HH

T3

=HH= = 5 %'ut

* T>2HH

T T5

=HH2 2 ?

PL= 3 H H

PL2 = 3 'ut 2

= %% 2


22/54

C'ting &he m'!el:

Current: =HHV5 W 2HHV> W2HHV? W =HHV3 W =HHV5 X

T3>HH

1e,'re pr'ee!ing7 he" i, the *eaile'luti'n i ('r inFt) !egenerate: Lumer ', all'ati'n mut e at leat: m Wn % =

X 3 W 3 % = X 5 (/e ha;e 5 i the a';e et 'the 'luti'n i n't !egenerateK See net li!e i,

it /a) L'/7 /e mut !etermine i, itF 'ptimal 4e mut 'ntinue t' a e'n! phae t'

!etermine thiK


23/54

$ealing /ith $egeneray (/hen iti ,'un!)

4e mut all'ate a ;ery mall am'unt ', materialm';ement (all it ε) t' any in!epen!ent ell

An in!epen!ent ell i any 'ne /here /e can not 'mplete a tepping m'ti'n9 ', 'nly h'ri'ntal an!;ertial m';ement thr'ugh +lle! ell t' return t'the 'riginating ell 4e all thi the θ%path. (thi /'ul! e !'ne y alternating a!!ing

'r utrating aignment ', material t' any +lle! ell /e tep 'n) L'te any ell /ere a path an e uil! i a !epen!ent ell

4e /'ul! a!! uBient εF t' reah all'ate! ell'unt ', m W n – = numer (ma"e the 'luti'n n'n%!egenerate)

ere ine R=C= i in!epen!ent – he" ,'r y'urel, –/e /ill +ll it /ith ε unit – thi ma"e 'ur 'luti'nn'n%!egenerate – 5 ell are all'ate!K


24/54

Entering Phae II:$etermining Optimality

4e /ill epl're the MO$I (m'!i+e!!itriuti'n) alg'rithm

A,ter +n!ing a n'n%!egenerate initial'luti'n7 a!! a r'/ ', D -F an! a 'lumn', RiF t' the Matri

&' egin7 Aign a er' ;alue t' any R 'rD p'iti'n

*'r eah all'ate! ell7 the ,'ll'/ingeprei'n mut e ati+e!: Ri W D - W i7- X H


25/54

Starting MO$I /ith ap'ile RD all'ati'n:

D -

Ri

A 1 C

%5 %2 %=

$M

H

T5

=HH

T?W2

T3 W2 =HH

E%2

TG W=

T?

2HH

T3

=HH

3HH

*%?

T>

2HH

T W=

T5

=HH

3HH

In!iat'r 't ,'r

thi ell (XRWDW)


26/54

MO$I 'ntinue!:

Eamine all in!iat'r ;alue ,'r empty ell – i,all are n'n%negati;e the 'luti'n i 'ptimal

I, 'me are negati;e then !e;el'p a θ%path

eginning at m't negati;e ell (here i R3C3) C'mplete the θ%path y tepping 'nly t' +lle!

ell (an! pi;'ting) /hile alternati;elyutrating then a!!ing θ all'ati'n

A,ter 'mpleting the path7 !etermine the %θ9ell /ith the mallet


27/54

*'rming the θ%Path (tart in R2C3)

D -

Ri

A 1 C

%5 %? %3

$M

H

T5

Wθ

T? %θ

=HH

T3

In!: H

=HH

E

H

TG

In!: W3

T?

Wθ

=HH

T3 %θ

2HH

3HH

*%

T> %θ T%

T5 3HH

Smallet %θ9 All'ate!am'unt

– i, /e ha! err'ne'uly all'ate! a een el'/ an!

re


28/54

A,ter =HH unit re%all'ati'n – n'/re'mpute RF an! DF

In!iat'r D -

Ri

A 1 C

Cap.

%? %= H

$M

%=

T5

εW=HH

T?W2

T3W2

=HH

E%3

TG W=

T?

2HH

T3

=HH

3HH

*

%5

T>

2HH

TW=

T5

=HH

3HH


29/54

''"ing at thi Matri

All in!iat'r are n'/ p'iti;e – thiin!iate an 'ptimal 'luti'nK

L'te thi agree /ith 'ptimal 'luti'n ,'un!earlierKKK

Rela ε ;alue t' er' – ma"e ell =7=all'ati'n =HH unit

Optimal tranp'rtati'n 't i: 5V=HH W ?V2HH W 3V=HH W >V2HH W 5V=HH X

3>HH


30/54

et try 'ne:

&'

*r$ E * @ Cap.

A G 6 ? 2 ?

1=H 6 6 2

3

C? 2 3 G

6

$eman! 3 3 3 ?=3

=3


31/54

1ut the &ranp'rtati'nPr'lem an e 'l;e! yPK $e+ne an

O-eti;e

*unti'n:

Su-et t':

( )1 1

:

is cell cost and is amount moved

m n

ij iji j

ij ij

c X

where

c X

= = ∗∑ ∑

1

1

i

j

for 1 i m

for 1 j nwhere:

a are all shipment from a source (capacity)

b are all shipments into a "sink" (Demand)

n

ij i j

m

ij ji

X a

X b

=

=

= ≤ ≤

= ≤ ≤

∑

∑


32/54

Our Eample (y PS'l;er)

Variables XDM-A XDM-B XDM-C XE-A XE-B XE-C XFL-A XFL-B XFL-C

Values: 0 0 0 0 0 0 0 0 0

0VC 0 0 0 0 0 0 0 0 0 OBJ.Fn.

Costs: 5 4 3 4 3 ! " 5 0

Ca#C$ $ $ $ 0 $00

Ca#C% $ $ $ 0 300

Ca#C3 $ $ $ 0 300

De&C$ $ $ $ 0 300

De&C% $ $ $ 0 %00

De&C3 $ $ $ 0 %00


33/54

Applying S'l;er:


34/54

Eamining Reult:

Optimal 0alue X T3>HH (a /e,'un! y han!FK)

Ship: =HH $M%AU 2HH *%AU 2HH E%1U=HH E%CU =HH *%C

All a /e ,'un! uing the 0AM

euriti Muh *ater an! eaier uing PK


35/54

Epani'n t' &ranhipmentPr'lem

4hen a ytem i all'/e! t' ueinterme!iate /areh'uingF ite – theyare S'ure ite 'r e;en Sin" ite in

regular tranp'rtati'n pr'lem – ,'rre!uing the t'tal 't ', tranp'rtati'n/e all the pr'lem the tranhipmentnet/'r" pr'lem

4e re


36/54


In the general &ranhipment pr'lem the tranp'rtnet/'r" i epan!e! t' all'/ m';ement et/een

'ure an! et/een in" (an! e;en a" t' 'ther'ure)


37/54


Etrate! ,r'm: . P. Ignii'7LinearProgramming inSingle- Multi!le-

"b#ecti$eS%stems7Prentie all=>G2 &he 'riginal

tranp'rtati'n pr'lem


38/54

An'ther e;el ', &ranp'rt – the!eli;ery r'ute pr'lem

&hi pr'lem i uually 'ne ', ;ery large ale(laially alle! the &ra;eling Saleman Pr'lem)

1eaue ', thi7 /e typially an n't +n! an

a'lutely 'ptimal 'luti'n ut rather 'nly near'ptimal 'luti'n – a een in 'ur tet''" ere7 the "n'/n are the 't ', tra;el ,r'm p'int t'

p'int thr'ugh'ut the net/'r" an! /e try t' a;e 't yganging up9 trip

S'luti'n typially ,'ll'/ al'ng a line ', atta"ae! 'n the Aignment Pr'lem9

See an!'ut7 ,'u 'n the Sh'rtet R'ute Pr'lem


39/54

$eli;ery Optimiati'n:

Realitially7 a !eli;ery ;ehile an'nly arry ' muh – ' thi mayre!ue eeti;ene ', 'luti'n

$eli;eryF ta"e Real &ime – againthi mut e 'ni!ere! !uringhe!uling an! r'uting

'a!ing ', ;ehile i ;ery ritialt' 'ntr'l tep 2 time – l'a! inre;ere !eli;ery 'r!erK


40/54

''"ing at the 'ating ', Le/*ailitie:

C'ni!erati'n: a'r Climate &ranp'rtati'n iue:

Pr'imity t' mar"et Pr'imity t' upplier re'ure Pr'imity t' parent 'mpany (haring

epertie7 purhaing7 !r'p r'uting) –'ul! e plu 'r minuK

Nuality ', tranp'rtati'n ytem


41/54


C'ni!erati'n7 'nt. C't t' 'perate (utilitie7 tae7 real

etate 't7 'ntruti'n) Epani'n 'ni!erati'n R''m a;ailale ,'r gr'/th C'ntruti'n t' m'!i,y truture

Any l'al inenti;e t' re%l'ate Nuality ', i,e (h''l7 rereati'nal

p'iilitie7 health are – 't7a;ailaility)


42/54


M't 'rganiati'n 'mpare e;eral alternati;e &hey i!enti,y /eighting ,at'r ,'r the

harateriti then narr'/ h'ie =t 'ni!er regi'n 2n! narr'/ earh t' 'mmunitie 3r! 'ni!er pei+ ite $'ne y 'lleting !ata a!!reing the ;ari'u ,at'r

un!er tu!y

A,ter !ata i 'llete! an! /eighte!7 ma"eeleti'n (typially y tarting /ith


43/54

'ati'n $eii'n in SCM:

In the +nal analyi the !eii'ntypially 'me !'/n t' a Center ',

@ra;ity S'luti'n9 that minimie thet'tal tra;el !itane et/een the*aility an! all p'ile C'ntat,ailitie

C'ntat ,ailitie may e 'ure ', Ra/Material 'r 'ther Supplier 'r they maye !etinati'n ,'r Pr'!ut t're! in 'rma!e at the ne/ ,aility un!er !eign


44/54

et C'ni!er an Eample:

(/here h'ul! /e put'ur ne/ $itriuti'nCenter)


45/54

@i;en thi in,'rmati'n:

St're'ati'n(7Y)

C. Sale

A (2.57 2.5) 51 (2.57 ?.5) 2

Ca (5.57 ?.5) =H

$ (57 2)

E (G7 5) =H

* (7 2) 2H

@ (>7 3.5) =?a

Site ', P'ile $C =U

Site ', P'ile $C 2

l i i ,


46/54

S'luti'n i a &ype ', &ranp'rtati'n Minimiati'n:#ing Either Euli!ian 'r Reta%linear 'et

Euli!ean $itane:

Reta%inear (R) $itane:

( ) ( )2 2

: Xs or !s are map coordinates

of stores or Distribution enter

j jeuclid i DC i DC d X X Y Y

here

= − + −

j j RL i DC i DC

d X X Y Y = − + −


47/54

L'/ 4hat

1et 'ati'n i the 'ne that minimiethe um ', the t'tal nee! ', all

$eman! time the tra;el !itanein;'l;e!:

( ) i

for all #inks

and each possible new #ource

ji euclid

all

D d ∗∑


48/54

ea!ing t' thi analyi:

$C = 5.5 ?.5

$C 2 2

S&ORE 'ati'n Y 'ati'n $ Euli! = $ Euli! 2 $ R = $ R 2 $eman! $V$E = $V$E 2 $V$rl = $V$rl 2

A 2.5 2.5 3.6H555= ?.526>3 5 5 5 =G.H26 22.63G?6 25 25

1 2.5 ?.5 3 5.=?G=5 3 2 6 =H.2>563 6 =?

C 5.5 ?.5 H 2.>=5?6 H ? =H H 2>.=5?6 H ?H

$ 5 2 2.5?>5= 2 3 2 =.G?65 =? 2= =?

E G 5 2.5?>5= 3.=622G 3 ? =H 25.?>5= 3=.622G 3H ?H

* 2 2.>=5?6 H ? H 2H 5G.3H>52 H GH H

@ > 3.5 3.6?HH55 2.5 ?.5 3.5 =? 5H.>6H 35 63 ?>

=6.63> =?2.== 225 =G2

*r'm the Analyi: $C 2 minimie

't


49/54

1ut i thi the Optimall'ati'n

Perhap /e 'ul! plae the CenterF at theMe!ian ', all the urrent !eman!l'ati'n

In an RF ene7 ,'rm the Cumulati;e4eighting (Cum. $eman!)

=t: 'r!er eah target l'ati'n in inreaingle;el ', an! then Y

$etermine the a;erage ', thi Cum4t ,'r Y an! plae l'ati'n the i the amea the ite that &rst e'cees this $alue


50/54

C. 4t. A;erage i 3?

St're

$em.

''r

C.4t.

Sel. St're

$em.

Y''r

C.4t.

Sel

A 5 2.5 5 $ 2

1 2 2.5 * 2H 2 2

$ 5 =? A 5 2.5 32 V

C =H 5.5 2? V @ =? 3.5 ?6 VV

* 2H ?? VV 1 2 ?.5 ?G

E =H G 5? C =H ?.5 5G

@ =? > 6G E =H 5 6G

'ate at: (in ) an! 3.5 (in Y) a a ruleV


51/54

Optimiati'n uing Euli!ian$itane:

=t C'mpute the Center ',@ra;ity:

( )

( )

for each location i

i i

i

i i

i

D x

X D

D y

Y D

∗

∗

∗

=

∗

=

∑∑

∑∑


52/54

Optimiati'n:

Start /ith V7 YV !etermine! a';e a ur7 Yur

C'mpute:

St'p iterati'n /hen an! Y t'p hanging

( )

( ) ( )

( )( )

( )

( )( )

( )

2 2$

:

$

$

$

$

ii

cur i cur i

i i

new

i

i i

new

i

D g x y

x x y ythen

x g x y x

g x y

y g x y y

g x y

=

− + −

∗=

∗=

∑

∑∑∑


53/54

&ren! in Supply Chain

Management Out'uring ', the l'giti ,unti'n

(eample: Saturn 'ut'ure! their l'giti

t' Ry!er &ru". Out'uring ',manu,aturing i a ma-'r tren! thee !ay)

M';ing t'/ar! m're /e ae!tranati'n ytem

Impr';ing the in,'rmati'n 8'/ al'ng theentire hain


54/54

@l'al C'nern in SCM

M';ing manu,aturing 'h're t' a;e!iret 't 'mpliate an! a!!

epene t' upply hain 'perati'n7!ue t': inreae! in;ent'ry in the pipeline

In,ratruture pr'lem

P'litial pr'lem $ealing /ith 8utuating ehange rate Otaining "ille! la'r

chapter 6-scm_s06.ppt

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