1、LOGISTICS, DISTRIBUTION, AND TRANSPORTATION,Chapter Fifteen,Copyright 2014 by The McGraw-Hill Companies, Inc. All rights reserved.,McGraw-Hill/Irwin,Learning Objectives,LO151: Explain what logistics is. LO152: Contrast logistics and warehouse alternatives. LO153: Analyze logistics-driven location de
2、cisions.,15-2,Logistics,Logistics: the art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities International logistics: managing these functions when the movement is on a global scale Third-party logistics company: an outside co
3、mpany used to manage all or part of another companys logistics functions,15-3,Logistics Decisions,Multimodal solutions are the norm,15-4,Warehouse Activities,15-5,Facility Location Issues,15-6,Facility Location Issues,15-7,Boeing Adds South Carolina to Its Dreamliner Assembly Location,15-8,Boeing as
4、sembled all commercial planes in Seattle until the Dreamliner 787 came along. First Dreamliner came out of SC plant on April 27, 2012. By the end of 2013, 3.5 planes per month are expected. Boeing chose SC over the vigorous objection of its union. The union finally relented, and signed a contract, w
5、hen the firm agreed to add an advanced version to the Dreamliner line-up in Seattle.,Plant Location Methods,15-9,Factor-Rating System,Is the most widely used. List of factors is developed. Range of possible points is assigned to each factor. Each site is rated against each factor. The sums of assign
6、ed points for each site are computed. The site with the most points is selected.,Example refinery location factors,15-10,Linear Programming Transportation Method,Transportation method is a special linear programming method. Seeks to minimize costs of shipping n units to m destinations, or it seeks t
7、o maximize profit of shipping n units to m destinations.,A,B,1,2,3,5,7,8,6,4,9,15-11,Example 15.1,15-12,Suppose the U.S. Pharmaceutical Company has four factories supplying the warehouses of four major customers and its management wants to determine the minimum-cost shipping schedule for its monthly
8、 output to these customers. Factory supply, warehouse demands, and shipping costs per case for these drugs are given in the table in the next slide.,Example 15.1,Formulation of the problem:,15-13,Example 15.1,Excel: US Pharmaceutical,15-14,Centroid Method,Used for locating single facilities that con
9、siders existing facilities, the distances between them, and the volumes of goods to be shipped between them. Assumes inbound and outbound transportation costs are equal Does not include special shipping costs for less than a full load This methodology involves formulas used to compute the coordinate
10、s of the two-dimensional point that meets the distance and volume criteria stated earlier.,Cx = X coordinate of centroid Cy = Y coordinate of centroid dix = X coordinate of the ith location diy = Y coordinate of the ith location Vi = volume of goods moved to or from the ith location,15-15,Example 15
11、.2,15-16,The HiOctane Refining Company needs to locate an intermediate holding facility between its refining plant in Long Beach and its major distributors. Next slide shows the coordinate map and the amount of gasoline shipped to or from the plant and distributors. In this example, for the Long Bea
12、ch location (the first location), dix = 325, diy = 75, and Vi = 1,500.,Example 15.2,Excel: Centroid Calculation,15-17,Example 15.2,Cx = X coordinate of centroid Cy = Y coordinate of centroid dix = X coordinate of the ith location diy = Y coordinate of the ith location Vi = volume of goods moved to o
13、r from the ith location,15-18,Example 15.2,Start search for new location here,15-19,Example 15.2,Excel: Centroid Calculation,15-20,Service Facility Location,15-21,Linear Regression as a Model for Service Location (see Example 15.3 in text),15-22,Develop a model for locating a motel. The goal is to l
14、ocate so as to maximize long-term profitability. What Category of variables and individual items in the category are important? Competitive Room rate Competitors rate, etc. Demand generators Nearness to military base, hospitals Nearness to college Nearness to malls, etc.,Factors Affecting Service Lo
15、cations,15-23,Demographic Employment Income Population Physical Accessibility Traffic, etc.,Choosing Variables That Matter,15-24,Look at the correlation of profitability (operating margin over the last few years) with all the potential parameters. Pick the ones that are highly correlated (in a posit
16、ive or negative fashion). Run a regression line with the chosen parameters as the independent variables and profitability as the dependent variable.,Result from Example 15.3 Motel Location,15-25,Profitability = 39.05 5.41 x State population per inn (1,000)+ 5.86 x Room rate for the inn 3.91 x Sq. ro
17、ot of the income of the area (1,000) 1.75 x College enrollment within 4 miles,How the Result Is Used,15-26,The hotel chain implemented the model on a spreadsheet and routinely uses the spreadsheet to screen potential real estate acquisitions. The founder and president of the hotel chain has accepted the models validity and no longer feels obligated to personally select the sites. This example shows that a specific model can be obtained from the requirements of service organizations and used to identify the most important features in site selection.,
