I Table of contents
I Table of contents II
III List of symbols IV
IV List of figures V
1 Introduction 1
2. Reverse logistics and ELV collection network 2
3. Mathematical model formulation 4
3.1 The model based on UFLP 4
3.2 The model based on the MCLP 6
4. Numerical example for ELV collection network design 9
5. Conclusion 13
Bibliography 14
II List of abreviations
ELV End-of-life vehicles
FCFLP Fixed Charge Facility Location Problem
MCLP Maximal Covering Location Problem
UFLP Uncapacitated Facility Location Problem
III List of symbols
I the set of demand nodes indexed by i
J the set of candidate facility locations indexed by j
d_ij distance between demand node i and candidate site j
f_j fixed cost of locating facility at candidate site j
h_i demand at node i
α cost per unit demand per unit distance
the facility is opened if it is equal to 1 and 0 if not
y_ij fraction of demand at node i that is served by facility at node j
p predefined number of facilities to locate
D maximal coverage distance
the set of all candidate locations that can cover demand point i
y_ij fraction of demand at node i that is served by facility at node j
p predefined number of facilities to locate
D maximal coverage distance
the set of all candidate locations that can cover demand point i
demand node I is fully covered when equal to 1 and 0 if not
IV List of figures
Figure 1: A generic supply chain network 3
Figure 2: Sensitivity analysis based on results from adapted UFLP model…………….9
Figure 3: Sensitivity analysis based on results from adapted MCLP model for 85 and 95 percents of demand coverage…………………………………………………………..11
Figure 4: Three-dimensional relation between distan...
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With different prices and services across the facilities, management is trying to identify opportunities to standardize costs and services across the business units. The goal of this case study is to update Deere and Company’s logistics by recommending solutions to cut logistics cost by 69 million over 3 years
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Facility location is the actual physical location for the storing, assembling and fabricating of the product in the network of supply chain. And the decision on the choices of facility location affects the performance of the supply chain.
Gulfstream Aerospace is one of leading corporate jet manufacturers in the world. They have been building jets since the late 50’s and continue to create top of the line aircraft which have become the status symbol of success. With their success comes an extensive company infrastructure and supply chain. First, we will discuss how Gulfstream uses the location to maximize the effectiveness of its supply chain. Then we will look at the business case for Gulfstream’s approach to its supply chain, and in particular, does it make sense to have a car follow supplies while it is on the rail system. Finally, we will look at Gulfstream’s to the “just in time” manufacturing and its strategic approach to choosing locations.
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As organizations move goods from source to place of utilization they enjoy utilities of place and time.According to Branch (2009) firms can choose one or combine several modes of transport to effectively move materials or products for scheduled production and smooth operation. Good transportation facilitates supply chain efficiency by delivering goods to the ultimate customer securely and in an economical way. Inbound transportation should plan for expected lead times to best manage delivery timelines. Baker (2010) states that organizations should have shipment visibility while managing inbound transportation. Additionally they should balance trade-off between imports costs and savings made at destination. This means keen focus on landed costs, customs clearance, shipments lead times and inventory holding costs. Supply chain performance is impacted by transport costs, speed and product delivery consistency. To achieve competitive performance Organizations must move materials in the right order, right quantity, right quality and right time (Bowersox,
Manufacturing in Global Operations make’s very much difficult in selecting the suppliers around the network. One of the biggest challenges that Manufacturing companies are facing is high supply chain cost. In order to satisfy their customers price expectations, companies opted to relocate their manufacturing facilities to low cost countries around the world in an effort to reduce direct and indirect costs.
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This is the activity carried out by organizations that own production sites, and their performance has a major impact on product cost, quality, speed of delivery and delivery reliability, and flexibility [8]. As it is quite an important part of the supply chain, production needs to be measured and continuously improved. Suitable metrics for the production level are as follows. Order lead-time, the total order cycle time, called order to delivery cycle time, refers to the time elapsed in between the receipt of customer order until the delivery of finished goods to the customer. The reduction in order cycle time leads to reduction in supply chain response time, and as such is an important performance measure and source of competitive advantage [9]. It directly interacts with customer service in determining competitiveness. Range of product and services: According to [8] a plant that manufactures a broad product range is likely to introduce new products more slowly than plants with a narrow product range. Plants that can manufacture a wide range of products are likely to perform less well in the areas of value added per employee, speed and delivery reliability. This clearly suggests that product range affects supply chain performance. Effectiveness of scheduling techniques is another important measure of supply chain effectiveness. Scheduling refers to the time or date on or by which
A detailed analysis should be made on performance of 13 distribution centers – capacity, inventory turnover, costs etc. It appears most of the centers should be closed as they serve as excessive link in the supply chain, accumulating high inventory levels.