A DC Location Model for global SCM in IPC industry
Date Issued
2009
Date
2009
Author(s)
Pu, Hsu-Yang
Abstract
Abstracthen choosing a location of distribution center, most practice only consider about the local factors, such as labor cost, traffic environment, development cost and so on, but seldom discuss the impact on global supply chain regarding. However, it’s not a globally optimal situation. Therefore, scholars formulate the problem as an mathematic models to find the global optimal location based on the practice of different industries. This research aims at the practice of industrial computer industry, to construct a mix-integer linear programming(MILP) model for locating DCs globally. Regarding the characteristic of product demand in industrial computer industry, the variation is relative high, such that safety stock plays an important role when the structure of supply chain network is planned. After reviewing scholar''s past research, in views of the industrial computer industry’s product characteristics, include larger demand variation, and higher product value and so on, an mix integer programming model (MILP model) was constructed. Which shipment frequency, shipping modes, shipping time and relative costs, including transportation cost, carrying cost, inventory cost, development cost, duty cost, are considered. This research uses the i-Log software to solve the MILP model, the approximate optimal solution from the model, which is obtained the best distribution center location, the optimal shipping quantity of the routes, as well as the appropriate shipping mode for each product are identified. Also, the important factors, such as the difference of fare between air and water and the customer’s service level, are analyzed using sensitivity analysis. By utilizing the optima shipping the model of this research, the firm can reduce total logistic cost, and obtains the best distribution center location, shipping mode, and shipping routes. The enterprise can also learn a lesson from the tradeoff between carrying cost and transportation cost.
Subjects
Location Model
Safety Stock
GSCM
MILP
Type
thesis
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