Supply Chain II College 1

Welke beslissing nemen we in supply chain?

- Facility role
Welke rol, welke processen?

- Facility Location
Waar moeten deze staan?

- Facalitiy allocation
How much capacity at each facility? -> Constant, seasonal?

- Market and supply allocation

Welke markten? Zijn niet constant. Fluctuaties in prijzen, kosten, vraag, subsituten

Welke factoren beinvloeden deze beslissingen?

1. Strategische factoren
- High level Responsiveness vs cost
- Low level Customer response time and local presence

2. Technologische factoren
Schaalvoordelen: denk aan technologische shit; chips etc. Meer stuks = voordelen

3. Macroeconomic factor

4. Infrastructuur factoren
Accesibility van havens, betrouwbaarheid van aanleveren elektriciteit, stabiel internet

5. Logistics and facility costs

Transport en voorraadkosten, voorraadkosten kunnen verschillen door personeel

6. Competitive factoren
Wat doen concurrenten?
o Positieve externalities between firms
 Collocations benefits all

o Locating to split the market

 Locate to capture largest market share
Fase 1
- Comperatieve strategie
- Forceastin toekomst global competition
- Identify constraints on available capital
- Determine broad supply strategy

Fase 2
- Forecast of the demand by country or region
- Economies of scale or scope
- Identify demand risk, exchange-rate risk, political risk, tariffs,
- requirements for local production, tax incentives, and export or import
- restrictions
- Identify competitors

Fase 3
- Hard requirements We hebben er 1 gekozen, willen nu facility gaan zetten 
waar? Welke infrastructuur? Vliegveld, haven, wegen etc.

- Soft requirements: personeel, cultuur match met community?

Fase 4
- Location choices
Maximize the overall profitability of the supply chain network while providing customers
with the appropriate responsiveness

Many trade-offs during network design

Network design models used

- to decide on locations and capacities
- to assign current demand to facilities and identify transportation lanes

Belangrijke informatie nodig to feed the models

- Location of supply sources and markets
- Location of potential facility sites
- Demand forecasts by market
- Facility, labor, and material costs by site
- Transportation costs between each pair of sites
- Inventory costs by site and as a function of quantity
- Sale price of product in different regions
- Taxes and tariffs
- Desired response time and other service factors

Phase II
Network optimization models

Phase III
A supply chain network should maximize profits after tariffs and taxes while meeting
customer service requirements
 Hoorcollege 4

Importance of the level of product availability

Fill rate: procentueel gezien hoeveel stuks kan ik leveren van de vraag
 #Stuks geleverd/# stuks gevraagd

CSL: in hoeveel keer van de cyclusssen kan ik aan de vraag voldoen

Factors

In balans brengen costs van overstoking, C0 en cost van understocking Cu

Scenario’s
 Seasonal items with a single order in a season
 One-time orders in the presence of quantity discounts
 Continniusly stocked items

LL Bean Example

Demand Di en Probability Pi

Sales price $ 100

Cost c= $ 45
Sales prie outlet $50
Moving to outlet store $10
 Savage value $40

Cu = p – c = 100 – 45 = 55
C0 = c – s = 5

U < 0  minder bestellen

O< U  meer bestellen
Tov duizend stuks is het gunstig om 100 stuks extra te bestellen
Vanaf 1300 –> 1400 stuks beginnen we verlies te leiden

EOQ  1.300 is in dit voorbeeld de optimale bestelgrootte

Fill rate 

Bepalen optimale cycle service level for seasonal Items – Single order

Berekenen: Opbrengst om 1 untit extra in stock te hebben

 1 – CSL* = vraag is groter dan optimal order quantity
 P-C = winst per order]
 Marginale opbrengst in de optimale situatie = 0

 (1-csl*)(p-c)-csl*(c-s) =0

Deel 1 formule: (1-csl*)(p-c) is de Expected benefit of purchasing extra unit = (1-CSL)*(p-c)

Deel 2 formule: CSL*(c-s) expected cost of purchasing extra unit
 Cycle Service Level at optimal point, expected marginal contribution = 0

Expected profit:

EXPECTED Profit(O*) = expected profit bij corresponding optimal order size

Voorbeeld Seasonal Times

Expected overstock
 Expected understock

One-time orders & Quantity Discounts

U = 150
P = 200
K = 200
o = 40
C = 50
Cd = 45
S=0
Stap 1 = Step 1, normal price

CSL *

O*

Expected profit from ordering 177 units

Stap 2 = Step 2, discount price

CSL*

O*

E(p) =

EXCEL
Desired cycle service level for continuously stocked items

(1) Meerdere periodes achter elkaar en backlogging

(2) Unmet demand is lost

Q/D is cyclus lengte

Kans vraag > service level: (1-CSL)
Backlog: later leveren, vraag niet verloren
 Opgave Demand during stockout is backlogged

Current service level for given ROP & distribution (gedurende de leadtime)

What would the cost of a stockout have to be in order for this to make any sense?
  CSL omschrijven omschrijven naar  Cu

Option 2: unmet demand is lost

CSL*

Unmet demand ve
 Managerial levers to improve supply chain profitability

Prijs verhogen van een product of kosten verlagen