Location of facilities and routes or links What is network analysis? Study of the locations & links for minimizing logistical costs and or maximizing customer service
1
2. Their locations
3. Communication systems
facilities?)
2. Size of the facility, how big?
Factors to be considered in deciding the size 1. Fixed as against random access storage 2. Horizontal versus high rise layout 3. Order picking (large inventory) versus stock replenishment (small inventory) activities 4. Multi-dock versus single dock layout
Importance of network analysis & design Decisions of N/W Analysis are taken to ensure 1. Prompt response to market dynamics What are market dynamics?
Changing customers
6
DIRECT SHIPMENT
10/23/2012
10/23/2012
10
Amount of transshipment
Number of locations and volume of inventory
The square root law X2 =[X1] [n2/n1] X1 = total inventory in existing facilities X2 = total inventory in future facilities
n1 = number of existing facilities [warehouses]
12
Location of facilities
Some models for facility location
Gravity model
Analytical models
Ton-mile center
13
14
Milk run
16
Roll On/Roll Off ferries [RORO]: the truck rolls on to the and rolls off at the end of the voyage
10/23/2012
17
10/23/2012
19
LASH
10/23/2012 20