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Supply Chain Networks Optimization

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Designing Value-Creating Supply Chain Networks

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Abstract

How many production, distribution, or service centers should a company implement to meet its evolving needs, where should they be located, and what should their mission be? These strategic questions are examined in this chapter. The first section addresses the nature and issues of SCN design problems. The second presents common deployment strategies found in practice. Section 7.3 proposes cost minimization models for the design of basic production-distribution networks. Section 7.4 focuses on the maximization of the value added by a SCN. Section 7.5 provides an activity-based modeling approach for the design of a generic SC network, and it examines the characteristics of manufacturing networks more closely. Finally, Sect. 7.6 shows how economies of scale can be taken into account in SCN design models.

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Notes

  1. 1.

    For a primer on the use of the Excel Solver, see Harmon (2013).

  2. 2.

    In this Internet era, sales and delivery processes are usually decoupled, the former often taking place at the head office and the latter in a DC. The requirement for single sourcing is therefore less frequent than it used to be.

  3. 3.

    This exercise is based on an example given in Ballou (1992).

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Authors and Affiliations

  1. Université Laval, Quebec City, Canada

    Alain Martel

  2. KEDGE-Business School, Bordeaux, France

    Walid Klibi

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  1. Alain Martel
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  2. Walid Klibi
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Correspondence to Alain Martel .

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Martel, A., Klibi, W. (2016). Supply Chain Networks Optimization. In: Designing Value-Creating Supply Chain Networks. Springer, Cham. https://doi.org/10.1007/978-3-319-28146-9_7

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  • DOI: https://doi.org/10.1007/978-3-319-28146-9_7

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-28144-5

  • Online ISBN: 978-3-319-28146-9

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