Designing Supply Chains for New Product Development by Arreola-Risa Antonio

Author:Arreola-Risa, Antonio...
Language: eng
Format: epub
Published: 2014-01-30T00:32:24.320000+00:00

Exhibit 8-4. Three Final Assembly Sites to Satisfy Project Demand

A simple example is now presented: Assume a supply chain with two components, three final assembly operations, three possible suppliers per component, and a monthly demand of 200 units. Exhibit 8-5 shows results for how each component units would be allocated to each supplier, and how total demand would be allocated to each final assembly operation. Therefore, supplier 1 for component 1 would produce 65 units every month of the total demand (or 32.6% of 200), while suppliers 2 and 3 would produce 87 and 47 units, respectively. The total sum for each component is 100% (or 200 units). Similarly for final assembly sites 1, 2 and 3. This particular allocation represents the lowest total cost.

Exhibit 8-5. Example with Three Final Assembly Sites, Two Components and Three Suppliers per Component

Component

Supplier

Diversification

Order size (units)

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