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Using strategic supply chain network design, companies can achieve dramatic savings from their supply chains. Now, experts at IBM and Northwestern University have brought together both the rigorous principles and the practical applications you need to master. You’ll learn how to use supply chain network design to select the right number, location, territory, and size of warehouses, plants, and production lines; and optimize the flow of all products through your supply chain even if extends around the globe. The authors present better ways to decide what to manufacture internally, where to make these products, which products to outsource, and which suppliers to use. They guide you in more effectively managing tradeoffs such as cost vs. service level, improving operational decision-making by integrating analytics throughout supply chain management; and re-optimizing regularly for even greater savings. Supply Chain Network Design combines best practices, the latest methods in optimization and analytics, and cutting-edge case studies: everything you need to maximize the value of supply chain network design. For all supply chain executives, managers, strategists, and analysts; and for all students, instructors, and researchers in advanced supply chain management and/or logistics courses.
Part I: Introduction and Basic Building Blocks
Chapter 1: THE VALUE OF SUPPLY CHAIN NETWORK DESIGN 1
Chapter 2: INTUITION BUILDING WITH CENTER OF GRAVITY MODELS 23
Chapter 3: LOCATING FACILITIES USING A DISTANCE-BASED APPROACH 37
Chapter 4: ALTERNATIVE SERVICE LEVELS AND SENSITIVITY ANALYSIS 63
Chapter 5: ADDING CAPACITY TO THE MODEL 83
Part II: Adding Costs to Two-Echelon Supply Chains
Chapter 6: ADDING OUTBOUND TRANSPORTATION TO THE MODEL 99
Chapter 7: INTRODUCING FACILITY FIXED AND VARIABLE COSTS 127
Chapter 8: BASELINES AND OPTIMAL BASELINES 139
Part III: Advanced Modeling and Expanding to Multiple Echelons
Chapter 9: THREE-ECHELON SUPPLY CHAIN MODELING 157
Chapter 10: ADDING MULTIPLE PRODUCTS AND MULTISITE PRODUCTION SOURCING 177
Chapter 11: MULTI-OBJECTIVE OPTIMIZATION 207
Part IV: How to Get Industrial-Strength Results
Chapter 12: THE ART OF MODELING 217
Chapter 13: DATA AGGREGATION IN NETWORK DESIGN 237
Chapter 14: CREATING A GROUP AND RUNNING A PROJECT 261
Part V: Case Study Wrap Up
Chapter 15: CASE STUDY: JPMS CHEMICALS CASE STUDY 277