Supply Chain Network Design: Understanding the Optimization behind Supply Chain Design Projects - Softcover

Watson, Michael; Hoormann, Sara; Cacioppi, Peter; Jayaraman, Jay

Softcover

ISBN 10: 1981277528 ISBN 13: 9781981277520

Publisher: CreateSpace Independent Publishing Platform, 2012

Synopsis

This book is aimed at an important and under-served niche within the supply chain market: strategic supply chain design. Almost all supply chain professionals need to know about this discipline. No current book covers the theory and practice in a way that ensures readers will be successful with this discipline in the field. Strategic network design is about selecting the right number, location, and size of warehouses, plants, and production lines. It is about determining the territories of your facilities, what product should be made where, and how product should flow through the supply chain. It is about developing a good model of your supply chain so you can make good operational decisions. Network design is important because a good design helps a firm execute its strategy. To do it right, it requires analytics and optimization. And, when firms do it right, they can reduce supply chain costs by 5-15% which can translate into tens of millions of dollars of savings for the firm. The book brings together our experience in completing 100s of these projects, our teaching of this material, and our understanding of the science that drives these studies. The book is ideal for supply chain managers, analysts, and consultants who must do these studies, for people who work for a company or organization with a supply chain and want to understand the design and strategy better, and for professors who want to bring a practical and intellectually interesting material to the classroom. Our goal is to help you deeply understand this topic. We covers the topics with realistic case studies, discussions of practical consideration, and a mix of the science. This helps you understand the topic, understand how it applies to you, and build your intuition. We hope you enjoy the book!

About this title

From the Back Cover

“This book takes a very technical subject and makes it possible for managers and  students alike to understand all aspects of network design. The practical approach used in discussing topics throughout the book provides a clear and excellent framework for those seeking to learn more about the topic.”
—Dr. Mary C. Holcomb, Department of Marketing and Supply Chain Management, University of Tennessee

“Supply chain management (SCM) is a rapidly growing area of study—and network design is one of the fastest growing areas within SCM. I have been a long-time  practitioner of network modeling, as a manager in business and as a consultant,  and I have covered the topic in university lectures. I still learned a great deal  about a subject I thought I knew thoroughly!”
—Bill Nickle, Principal, Nickle Consulting

 “...the authors draw on their extensive expertise as practitioners to provide valuable  insights into how to successfully execute a network design study.”
—Dr. Mike Hewitt, Kate Gleason College of Engineering, Rochester Institute of Technology

“Supply Chain Network Design will help students, academics, and practitioners alike understand the importance of successfully designing and optimizing a global supply chain network, while also explaining in easy-to-understand steps how to make it happen.”
—John A. Caltagirone, Quinlan School of Business, Loyola University

This book provides a complete foundation for building tomorrow’s most complex global supply chain models and using them to  reduce costs and support business strategy. Drawing on their experience building and optimizing hundreds of supply chains, the authors thoroughly introduce each key  concept and its modern scientific foundations and demonstrate its use through realistic case studies.

The authors offer specific solutions for  a wide range of common challenges, including efficiently expanding a warehouse/plant network, managing the subtle interactions between capacity and service levels, and  leveraging differences in cost and mode between inbound and outbound transportation. They also guide you in nuts-and-bolts planning and data collection and answering real-world questions such as: How do you build an  effective supply chain modeling team? How do you quantify capacity? How accurate does your data need to be? How do you debug models and avoid common mistakes?

Using their techniques, many supply chain practitioners have reduced their costs by 5-15%—translating into tens of millions of dollars of savings. You can achieve comparable results—and this book is the place to start.

Use leading-edge network design techniques to:
·   Select the right number, location, and size of warehouses, plants, and production lines
·   Specify the right territories for each facility
·   Optimize flow of all products through the supply chain
·   Decide what to manufacture internally, where to make these products, which products to outsource, and which  suppliers to use
·   Manage crucial tradeoffs such as cost  versus service level
·   Integrate analytics more effectively throughout supply chain management
·   Optimize regularly for even greater savings

Includes case studies and exercises that can be used  with commercially available software.

About the Author

Michael Watson is currently the world-wide leader for the IBM ILOG Supply Chain Products. These products include the network design product, LogicNet Plus XE. He has been involved with this product since 1998 when the product was owned and produced by LogicTools and then sold to ILOG in 2007 prior to being acquired by IBM. During this time, he has worked on many network design projects, helped other firms develop network design skills, and helped shape the direction of the group and product. He is an adjunct professor at Northwestern University in the McCormick School of Engineering, teaching in the Masters in Engineering Management (MEM) program. He holds an M.S. and Ph.D. from Northwestern University in Industrial Engineering and Management Sciences.

Sara Lewis is currently a world-wide technical leader for the IBM ILOG Supply Chain Products. She has run many full-scale network design studies for companies around the world, she has conducted hundreds of training sessions for many different types of clients, leads a popular network design virtual users group, and helps create educational material for network design. She has been involved with this group since 2006 when the network design tool was owned and produced by LogicTools. Prior to LogicTools, she held various supply chain roles at DuPont. She holds a Bachelor’s degree in Business Logistics and Management Information Systems from Penn State University and is a fre- quent guest lecturer on the topic of network design at several U.S. universities.

Peter Cacioppi is the lead scientist for IBM’s network design product, LogicNet Plus XE. He also holds the lead scientist role for IBM's inventory optimization solution. He first began developing network design engines in 1996 as employee number one for LogicTools, a supply chain planning company that was sold to ILOG in 2007 prior to being acquired by IBM. His responsibilities include translating business design issues into formal mathematical problems. His scientific contributions have ranged from developing a targeted network design computational engine to designing both the GUI and the engine for network design multi-objective analysis. He holds an M.S. in Computer Science (with a thesis in Operations Research) from the University of Chicago, and a BA in Computational Physics from Dartmouth College.

Jay Jayaraman currently manages the ILOG Supply Chain and Optimization consulting services team within IBM. This team solves clients’ most challenging supply chain and optimization business problems. He brings extensive hands-on expertise in supply chain network design and inventory optimization, with projects ranging from large scale, global supply chain network design strategy to implementing production planning and inventory optimization projects at the tactical level. He has successfully led and managed consulting projects for clients around the world and in many different industries such as chemicals, consumer packaged goods, retail, transportation, pharmaceutical, and many others. Prior to joining LogicTools (later acquired by ILOG and then IBM), he worked for Kuehne & Nagel, helping run network design projects and implement the results. He holds an M.S. in Industrial Engineering from the University of Florida, and a Bachelor’s degree in Industrial Engineering from Anna University, India.

Edition details

• Publisher: CreateSpace Independent Publishing Platform
• Publication date: 2012
• Language: English
• ISBN 10: 1981277528
• ISBN 13: 9781981277520
• Binding: Paperback
• Number of pages: 280