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DESIGN OF LOGISTICS SYSTEM

DESIGN OF LOGISTICS SYSTEM. Stage in a Supply Network. Supplier Plant Warehouse Outlet. A. A. Outlet 1,1. B. Outlet 1,2. Distribution Warehouse 1. B. B. Outlet 1,i. Pusat Logistik. Outlet j,1. B. Outlet j,2. Distribution Warehouse j. B. .

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DESIGN OF LOGISTICS SYSTEM

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  1. DESIGN OF LOGISTICS SYSTEM Senator Nur Bahagia@

  2. Stage in a Supply Network Supplier Plant Warehouse Outlet Senator Nur Bahagia@

  3. A A Outlet 1,1 B Outlet 1,2 Distribution Warehouse 1 B . .. B Outlet 1,i Pusat Logistik . . . Outlet j,1 B Outlet j,2 Distribution Warehouse j B . . . B Outlet j, i (A) Low rate volume shipment (B) Less than truckload Warehouse Location Problem Senator Nur Bahagia@

  4. Type of Logistics Design Operation Infrastructure • Infrastructure Given • Logistics Policy • Network Design Flow of good • Network • Flow of good Logistics Policy ? Logistics Policy Given Senator Nur Bahagia@

  5. Capacitated Plant location Model Plant ? ? ? ? ? ? Outlet Senator Nur Bahagia@

  6. Notation n : Number of potential Plant location m : Number of Outlet Dj : Annual demand for outlet j Ki : Annual capacity of plant i Fi : Annual fix cost of plant i Cij : Unit cost of producing and shipping from plant i to outlet j Yi = 1 if plant i open and 0 otherwise Xij: Quantity shipped from plant i to outlet j Senator Nur Bahagia@

  7. Component of model Performance Criteria • Annual Cost Decision Variables • Yi = 1 if plant i open and 0 otherwise • Xij: Quantity shipped from plant i to outlet j Constraints • Annual demand of outlet • Annual capacity of plant Senator Nur Bahagia@

  8. Model Formulation Min Z = ∑FiYi + ∑∑ CijXij Subject to: ∑Xij = Dj for j = 1, 2…….. m ∑Xij <= KiYi for i = 1, 2…….. n Yi  { 0,1} for i = 1, 2…….. n Senator Nur Bahagia@

  9. Capacitated Plant location ModelWith Single Sourcing Plant ? ? ? ? ? Outlet Senator Nur Bahagia@

  10. Component of Model Performance Criteria • Annual Cost Decision Variables • Yi : 1 if plant i open and 0 otherwise • Zij : 1 if outlet j supplied from plant i and 0 otherwise Constraints • Annual capacity of plant • Each outlet to be supplied only by one plant Senator Nur Bahagia@

  11. Model Formulation Min Z = ∑FiYi + ∑∑DjCijZij Subject to: ∑Zij = 1for j = 1, …….. m ∑DjZij <= KiYi for i = 1, …….. n Zij; Yi { 0,1} for i = 1, …….. n Senator Nur Bahagia@

  12. Locating Plants and Warehouse Simultaneously n : Number of potential Plant location m : Number of Outlet L : Number of suppliers U : Number of potential warehouse location Dj : Annual demand for outlet j Ki : Annual capacity of plant i Sh : Annual supply capacity at supplier h We: Potential annual warehouse capacity at site e Fi : Annual fix cost of plant i fe : Annual fix cost of warehouse e Cie : Unit cost of producing and shipping from plant i to warehouse e Chi : Unit cost of shipping from source h to plant I Cej : Unit cost of shipping from warehouse e to outlet j Senator Nur Bahagia@

  13. Locating Plants and Warehouse Simultaneously Supplier Plant Warehouse Outlet ? ? ? ? ? ? ? ? ? ? ? ? ? Senator Nur Bahagia@

  14. Component of Model Performance Criteria • Annual Cost Decision Variables Yi = 1 if plant i open and 0 otherwise Ye = 1 if warehouse e open and 0 otherwise Xie: Quantity shipped from plant i to warehouse e Xej: Quantity shipped from warehouse e to outlet j Xhi: Quantity shipped from supplier h to plant i Constraints Dj : Annual demand for outlet j Ki : Annual capacity of plant i Sh : Annual supply capacity at supplier h We: Potential annual warehouse capacity at site e Senator Nur Bahagia@

  15. Model Formulation Min Z =∑FiYi +∑feYe+∑∑ChiXhi+∑∑CieXie+ ∑∑CejXej Subject to: ∑ Xhi <=Sh forh = 1, …….. L ∑ Xhi - ∑ Xie >= 0 for i = 1, …….. n ∑ Xie <= KiYi for i = 1, …….. n ∑ Xie - ∑ Xej >= 0 for e = 1, …….. U ∑ Xej >= We Ye for e = 1, …….. U ∑ Xej =Djfor j = 1, …….. m Yi; Ye { 0,1} for i = 1, …….. n Senator Nur Bahagia@

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