Define location decisions
- strategic decisions
- mostly adding new facilities
- different criterea have to be considered
What are the implications of bad location decisions?
- high transportation costs
- lack of appropriately skilled labor
- lack of resources
how are locations selected?
- multiple feasable locations are identified
- choice is made between them
What kind of facilities do most firms have?
- Production facilities
- Central warehouses
- Distribution warehouses
“Connected” via truck transport
Final transport to customer =less than truck load
how can a location be determined? (2)
- Center of gravity
- Steiner-Weber-Problem
What is the major goal of location planning?
minimize total costs
In a linear programm what does 1 and 0 mean in regards to location?
0 –> location does NOT deliver to customer x
1 –> location DOES deliver to customer x
What is the transportation problem?
determining which customer gets what amount form which location
- location & customers are fixed
- customers have demand
- locations have capacity
How can the transportation problem be solved?
- Linear program with Excel solver
- simple heuristics like Column minima method
What is important about a heuristic?
it does not necissarily find the optimal solution
How do you solve a p-median problem?
a small set of p locations should
be chosen out of a larger set of possible location
What trends are there in supply chain?
- digitalization
- rethinking outsourcing
- use of AI, big data, analytics
- Sustainability
- Circular supply chains
- Tracking
define Tracking
RFIDs are read using a tag reader
-allows real time information
what is active / passive tracking?
active = needs battery
passive =no battery (energy of scanner used)
