Supply Chain Strategy, Second Edition by Edward H. Frazelle

Author:Edward H. Frazelle
Language: eng
Format: epub
Publisher: McGraw-Hill Education LLC
Published: 2018-06-15T00:00:00+00:00

Figure 6.14 Urban strike point analysis for a major retailer

4. Develop network optimization model. The next step is to formalize the network optimization model, expressing the network operating scenarios mathematically in the form of mathematical programs. The mathematical program should include an objective function (typically to minimize the total supply chain costs associated with the design) and a set of constraints (typically focused on the response time and demand requirements of the customer locations). At this point, our RightChain modeling tools are pre-configured to consider the full range of possible network models and scenarios.

5. Evaluate alternative network designs. The next step is to evaluate each scenario on the basis of cost, service, and risk. The evaluation summaries allow executives to quickly decide from among alternative network designs since the cost and service trade-offs are quantified and presented graphically. A few of our recent network evaluations are presented below.

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