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  • Facility Location Problem

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    Diego André Mimbela Arce
    10 views38 pages
    This document discusses supply chain network design and facility location models. It covers continuous single facility models like Weber problems and center of gravity. It also discusses network facility location problems using mixed integer linear programming (MILP) models and multiple location selection considering tradeoffs between cost and level of service. The document presents a case study on a root beer distributor, modeling its network design as an MILP and exploring different solutions from single to multiple distribution centers. It also covers sensitivity analysis and enforcing service level constraints. The key takeaways are that these models help decide supply chain network configurations while considering costs and service levels.

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    5. Facility location problem (1)

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    This document discusses supply chain network design and facility location models. It covers continuous single facility models like Weber problems and center of gravity. It also discusses network facility location problems using mixed integer linear programming (MILP) models and multiple location selection considering tradeoffs between cost and level of service. The document presents a case study on a root beer distributor, modeling its network design as an MILP and exploring different solutions from single to multiple distribution centers. It also covers sensitivity analysis and enforcing service level constraints. The key takeaways are that these models help decide supply chain network configurations while considering costs and service levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    10 views38 pages

    Facility Location Problem

    Uploaded by

    Diego André Mimbela Arce
    This document discusses supply chain network design and facility location models. It covers continuous single facility models like Weber problems and center of gravity. It also discusses network facility location problems using mixed integer linear programming (MILP) models and multiple location selection considering tradeoffs between cost and level of service. The document presents a case study on a root beer distributor, modeling its network design as an MILP and exploring different solutions from single to multiple distribution centers. It also covers sensitivity analysis and enforcing service level constraints. The key takeaways are that these models help decide supply chain network configurations while considering costs and service levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 38

    Demand Planning

    Maestría en Supply Chain Management

    Supply Chain Network Design

    Modelo de ubicación de planta

    Ing. Mg. Jorge Arturo Castillo Sánchez


    Table of content

    1. Continuous Single Facility Problems


    1. Weber or Minimun Distance
    2. Center of Gravity
    2. Network Facility Location Problems
    1. Mixed Integer Linear Program (MILP) models
    2. Solve MILPs in spreadsheets
    3. Multiple Location Selection Models
    1. Trade-off between cost and level of service (LOS)
    2. Solve in Spreadsheets
    4. Sensitivity Analysis with MILP models

    Ing. Mg. Jorge Arturo Castillo Sánchez 2


    Table of content

    1. Continuous Single Facility Problems


    1. Weber or Minimun Distance
    2. Center of Gravity
    2. Network Facility Location Problems
    1. Mixed Integer Linear Program (MILP) models
    2. Solve MILPs in spreadsheets
    3. Multiple Location Selection Models
    1. Trade-off between cost and level of service (LOS)
    2. Solve in Spreadsheets
    4. Sensitivity Analysis with MILP models

    Ing. Mg. Jorge Arturo Castillo Sánchez 3


    Continuous Location Models

    Ing. Mg. Jorge Arturo Castillo Sánchez 4


    New England Root Beer
    Distributors (NERD)

    Ing. Mg. Jorge Arturo Castillo Sánchez 5


    New England Root Beer
    Distributors (NERD)

    Ing. Mg. Jorge Arturo Castillo Sánchez 6


    Comparing to Center of Gravity

    Ing. Mg. Jorge Arturo Castillo Sánchez 7


    New England Root Beer
    Distributors (NERD)

    Ing. Mg. Jorge Arturo Castillo Sánchez 8


    Table of content

    1. Continuous Single Facility Problems


    1. Weber or Minimun Distance
    2. Center of Gravity
    2. Network Facility Location Problems
    1. Mixed Integer Linear Program (MILP) models
    2. Solve MILPs in spreadsheets
    3. Multiple Location Selection Models
    1. Trade-off between cost and level of service (LOS)
    2. Solve in Spreadsheets
    4. Sensitivity Analysis with MILP models

    Ing. Mg. Jorge Arturo Castillo Sánchez 9


    Network Facility Location
    Problems

    Ing. Mg. Jorge Arturo Castillo Sánchez 10


    Logical or Linking Constraint

    Ing. Mg. Jorge Arturo Castillo Sánchez 11


    New England Root Beer Solving the Network
    Facility Location

    Distributors (NERD 2)
    Problem in
    Spreadsheet

    Ing. Mg. Jorge Arturo Castillo Sánchez 12


    New England Root Beer Solving the Network
    Facility Location

    Distributors (NERD)
    Problem in
    Spreadsheet

    HA
    98
    93
    130
    0
    115
    103
    40
    60
    150
    73
    27
    66

    Ing. Mg. Jorge Arturo Castillo Sánchez 13


    NERD2 Model in SpreedSheet

    Ing. Mg. Jorge Arturo Castillo Sánchez 14


    Solving NERD2 Model in
    SpreedSheet

    Ing. Mg. Jorge Arturo Castillo Sánchez 15


    Solving NERD2 Model in
    SpreedSheet

    Ing. Mg. Jorge Arturo Castillo Sánchez 16


    Table of content

    1. Continuous Single Facility Problems


    1. Weber or Minimun Distance
    2. Center of Gravity
    2. Network Facility Location Problems
    1. Mixed Integer Linear Program (MILP) models
    2. Solve MILPs in spreadsheets
    3. Multiple Location Selection Models
    1. Trade-off between cost and level of service (LOS)
    2. Solve in Spreadsheets
    4. Sensitivity Analysis with MILP models

    Ing. Mg. Jorge Arturo Castillo Sánchez 17


    Trade-Offs for Multiple Locations

    Ing. Mg. Jorge Arturo Castillo Sánchez 18


    Cost Impacts

    Ing. Mg. Jorge Arturo Castillo Sánchez 19


    Level of Service Impacts

    Ing. Mg. Jorge Arturo Castillo Sánchez 20


    Level of Service – Distance to
    Customers

    Ing. Mg. Jorge Arturo Castillo Sánchez 21


    NERD2 Problem – Single DC
    Solution

    Ing. Mg. Jorge Arturo Castillo Sánchez 22


    NERD2 Problem – Two DC Solution

    Ing. Mg. Jorge Arturo Castillo Sánchez 23


    NERD2 Problem – Three DC
    Solution

    Ing. Mg. Jorge Arturo Castillo Sánchez 24


    NERD2 Problem – Four DC Solution

    Ing. Mg. Jorge Arturo Castillo Sánchez 25


    NERD2 Problem – Five DC Solution

    Ing. Mg. Jorge Arturo Castillo Sánchez 26


    Comparing the options

    Ing. Mg. Jorge Arturo Castillo Sánchez 27


    Table of content

    1. Continuous Single Facility Problems


    1. Weber or Minimun Distance
    2. Center of Gravity
    2. Network Facility Location Problems
    1. Mixed Integer Linear Program (MILP) models
    2. Solve MILPs in spreadsheets
    3. Multiple Location Selection Models
    1. Trade-off between cost and level of service (LOS)
    2. Solve in Spreadsheets
    4. Sensitivity Analysis with MILP models

    Ing. Mg. Jorge Arturo Castillo Sánchez 28


    Sensitivity Analysis with Number
    of DCs

    Ing. Mg. Jorge Arturo Castillo Sánchez 29


    Sensitivity Analysis with Number
    of DCs

    Ing. Mg. Jorge Arturo Castillo Sánchez 30


    Finding Optimal Solution

    Ing. Mg. Jorge Arturo Castillo Sánchez 31


    Enforcing LOS Minimums

    Ing. Mg. Jorge Arturo Castillo Sánchez 32


    Enforcing LOS Minimums

    Ing. Mg. Jorge Arturo Castillo Sánchez 33


    Enforcing LOS Minimums

    Ing. Mg. Jorge Arturo Castillo Sánchez 34


    Key Takes Aways

    Ing. Mg. Jorge Arturo Castillo Sánchez 35


    Key Takes Aways

    Ing. Mg. Jorge Arturo Castillo Sánchez 36


    Key Takes Aways

    Ing. Mg. Jorge Arturo Castillo Sánchez 37


    Demand Planning
    Maestría en Supply Chain Management

    Supply Chain Network Design

    Modelo de ubicación de planta

    Ing. Mg. Jorge Arturo Castillo Sánchez

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