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DistributionNetworkTheroleofDistributionintheFirstly,thedefinitionofdistributionisthestepstakentomoveandstoreaproductformtherstagetothecustomerstageinthesupplychain.TheDCandwarehousehavesixToholdinventorythatisproducedfromlongproductionToholdinventoryanddecoupledemandrequirementsfromproductionToholdinventorytoenablelargeseasonaldemandstobecateredformoreToholdinventorytoprovidegoodcustomerToenablecosttrade-offswiththetransportsystembyallowingfullvehicleloadstobeusedTofacilitateorderSecondly,Distributiondirectlyaffectscostandthecustomerexperienceandthereforedrivesprofitability.Itisimportantfortheorganizationstodecidetherightfacilitieslocations.Companiesarewillingtofindthebestgeographiclocationsfordifferentelementsinasupplychain.Andthedecisionsrequiredwhenevertherearemajorchangestooperations.AftermakethedecisionoftheDC,itwillaffecttheperformanceovermanyyears.Therefore,choosingthecorrectsitedoesnotguaranteesuccessforthesupplychainwillfacewithmanyunpredictablechangesandchallenges.However,choosingthewrongsiteguaranteesfailure.Theappropriatedistributionnetworkcanbeusedtoachieveavarietyofsupplychainobjectivesrangingfromlowcostthehighresponsiveness.Asaresult,companiesinthesameindustryoftenselectverydifferentdistributionnetworks.Forinstance,DelldistributesitsPCsdirectlytoendconsumers,whereascompaniessuchasHPdistributeseveraldaystogetaPC,whereascustomerscanwalkawaywithanHPPCfromareseller.P&GhaschosentodistributedirectlytolargesupermarketchainswhileobligatingsmalleryerstobuyP&Gproductsfromdistributors.ProductsmovedirectlyfromP&Gtothelargerchains,butmovethroughanadditionalstagewhengoingtosmallersupermarkets.DistributionnetworkdesignandlocationThechoiceofdistributionnetworkisreallyimportantfortheorganizationsthatthedistributionnetworkisrelatedtothechoicebetweenefficiencyandAgeneralapproachtolocationdecisionsisthat:Aimsofsupplychain-Goals/ItmeansthattoknowthegoalofwhydotheneedtobuildtheDC,andwhattheywhattheDCtoperformintheirSC.Logisticsaudit-HowwelldoesexistingsystemTomeasuretheperformanceofexistingsystem,identifythe ingsinthesystem.Identifymismatches-Between1andAlternativesformismatches-EffectsofLocationdecisions-ChoosingbestsitefromConfirmlocation-Ensure5isreallyImplementation/Monitoring-CheckInaddition,thereissixaspectsthatthecompaniesneedtoconsiderwhendesignthedistributionnetwork.(MagrathandHardy,1991)UnderstandthetotalmarketdemandandthegrowthratefortheUsetherightmeasureofBycustomersegment,thinkthroughhowendcustomerselectdealersorretailoutlets.BeclearaboutthedesiredmixofdealersorConsiderthecapacityofeachdealerorSetuponlyasmanydealersorretailersascanbewillserviced.Furthermore,fordeicidetheglobalsitelocationisamorecomplicated.Ithasfourmainphase.SupplychainstrategyCompetitivestrategyGlobalcompetitionInternalconstraints(capital,growthstrategy,existingnetwork)TariffsandtaxincentivesRegionalFacilityProduction(cost,scale/scopeimpact,supportrequired,CompetitiveenvironmentTariffsandtaxincentivesRegionaldemand(size,growth,homogeneity,localspecifications)PoliticalexchangerateanddemandriskProductionmethods(skillneeds,responsetime)AvailableinfrastructureLocationProduction(cost,scale/scopeimpact,supportrequired,Factorscosts(labour,materials,siteRegionaldemand(size,growth,homogeneity,localspecifications)PoliticalexchangerateanddemandriskLogisticscosts(transport,inventory,andAframeworkforglobalsiteFactorsinfluencingdistributionnetworkIngeneral,thefactorsarebasedontwomainCustomerCustomerSupplychainThecustomerneedsthataremetinfluencethe'srevenues,alongwithcostdecidetheprofitabilityofthedeliveryTobespecific,whilecustomerserviceconsistsofmanycomponents,wewillfocusonthosemeasuresthatareinfluencedbythestructureofthedistributionnetwork.Theseinclude:Response •Product •ProductCustomerexperience•Order •Responsetimeisthetimebetweenwhenacustomercesanorderandreceivesdelivery.Productvarietyisthenumberofdifferentproducts/configurationsthatacustomerdesiresfromthedistributionnetwork.AvailabilityistheprobabilityofhavingaproductinstockwhenacustomerorderCustomerexperienceincludestheeasewithwhichthecustomercanceandreceivetheirorder.Ordervisibilityistheabilityofthecustomertotracktheirorderfromcementtodelivery.Returnabilityistheeasewithwhichacustomercanreturnunsatisfactorymerchandiseandtheabilityofthenetworktohandlesuchreturns.Itmayseematfirstthatacustomeralwayswantsthehighestlevelofperformancealongallthesedimensions.Inpractice,however,thisisnotalwaysthecase.Customersorderingabookat arewillingtowaitlongerthanthosethatdrivetoanearbyBordersstoretogetthesamebook.Ontheotherhand,customerscanfindafarlargervarietyofbooksatAmazoncomparedtotheBordersstore.Firmsthattargetcustomerswhocantoleratealargeresponsetimerequirefewlocationsthatmaybefarfromthecustomerandcanfocusonincreasingthecapacityofeachlocation.Ontheotherhand,firmsthattargetcustomerswhovalueshortresponsetimesneedtolocateclosetothem.Thesefirmsmusthavemanyfacilities,witheachlocationhavingalowcapacity.Thus,adecreaseintheresponsetimecustomers’desireincreasesthenumberoffacilitiesrequiredinthenetwork.Inaddition,changingthedistributionnetworkdesignaffectsthesupplychain •Facilitiesand •Adecreaseintheresponsetimecustomers’desireincreasethenumberoffacilitiesrequiredinthenetwork.Forexample,Amazonwithfewerfacilitiesisabletoturnitsinventoryabouttwelvetimesayear,whileBorderswithabout400facilitiesachievesonlyabouttwoturnsperyear.Inboundtransportationcostsarethecostsincurredinbringingmaterialintoafacility.Outboundtransportationcostsarethecostsofsendingmaterialoutofafacility.Outboundtransportationcostsperunittendtobehigherthaninboundcostsbecauseinboundlotsizesaretypicallylarger.Increasingthenumberofwarehouselocationsdecreasestheaverageoutbounddistancetothecustomerandmakesoutboundtransportationdistanceasmallerfractionofthetotaldistancetravelledbytheproduct.Thus,aslongasinboundtransportationeconomiesofscalearemaintained,increasingthenumberoffacilitiesdecreasestotaltransportationcost.Ifthenumberoffacilitiesisincreasedtoapointwherethereisasignificantlossofeconomiesofscaleininboundtransportation,increasingthenumberoffacilitiesincreasestotaltransportationcost.Adistributionnetworkwithmorethanonewarehouseallows reducetransportationcostrelativetoanetworkwithasinglewarehouse.FacilitycostsdecreaseasthenumberoffacilitiesisreducedbecauseaconsolidationoffacilitiesallowsafirmtoexploiteconomiesofTotallogisticscostsarethesumofinventory,transportation,andfacilitycostsforasupplychainnetwork.Asthenumberoffacilitiesisincreased,totallogisticscostsfirstdecreaseandthenincrease.Eachfirmshouldhaveatleastthenumberoffacilitiesthatminimizetotallogisticscosts.Asafirmwantstofurtherreducetheresponsetimetoitscustomers,itmayhavetoincreasethenumberoffacilitiesbeyondthepointthatminimizeslogisticscosts.Afirmshouldaddfacilitiesbeyondthecost-minimizingpointonlyifmanagersareconfidentthattheincreaseinrevenuesbecauseofbetterresponsivenessisgreaterthantheincreaseincostsbecauseoftheadditionalfacilities.Furthermore,thereisseveralotherfactorsthatwillinfluencethenetworkdesigndecisions.LogisticsandfacilityImpactofaggregation(这一个知识点的东西很少Ifnumberofindependentstockinglocationsdecreasesbyn,theexpectedlevelofsafetyinventorywillbereducedbysquarerootofn(squarerootlaw) merceretailersattempttotakeadvantageofaggregation(Amazon)comparedtobricksandmortarretailers(WHSmith)AggregationhastwomajorIncreaseinresponsetimetocustomerIncreaseintransportationcosttoInformationcentralization-virtualInformationsystemthatallowsaccesstocurrentinventoryrecordsinallwarehousesfromeachwarehouseMostordersarefilledformclosestIncaseofastock-out,anotherwarehousecanfilltheBetterresponsiveness,lowertransportationcost,higherproductavailability,butreducedsafetyinventory.Q:StockallitemsineachlocationorstockdifferentitemsatdifferentDifferentproductsmayhavediff.demandsindiff.locations(i.e.snowTherecanbebenefitsfromaggregationBenefitsofaggregationcanbeaffectedby:Coefficientofvariation(cv)ofdemand(highercvyieldsgreaterreductioninsafetyinventoryfromcentralization)Locationdecision(重要FindsthebestgeographiclocationsfordifferentelementsinasupplychainItisneededwhenevertherearemajorchangestooperations,suchas:–theendofaleaseortenureonexisting–expansionintonewgeographical–changesinthelocationsofcustomersor–changesto–reorganisations,perhapsreducingthenumberoftiersinasupply–improvedfacilities,perhapsintroducingnew–changestotransport,suchasaswitchfromrailto–changestothetransportnetwork,suchastheopeningoftheChannel–mergers,acquisitionsorchangesofownershipthatgiveduplicatefacilitiesTochoosearightce,thereisanessentialbalancethatisbetweenneartotherorthecustomers,orinlocationswithlowoperationcosts.Hereisseveralimportantfactorsthatwillimpactthedecisions-LocationofLocationofrs;Locationofcompetitors;Logisticsinfrastructure;Culture;ernmentattitudes;Directcosts;Indirectcosts;Socialattitudes;Qualityoflife;Localcontrol;OrganisationalSpecially(选址的目标不同),itmaychooseasitewiththecheapestlandorbuildings.Itmightdecideonalocationthatisconvenientforkeyemployees.Abusinessneedstobeabletorecruitstaffwiththerightskillsbase.Itmightchooseasitethathaseasyaccesstorawmaterials.Forexample,manyfrozenfoodfactoriesarelocatednearfishingportstoreducetransporttimetakenandtokeepfishfresh.Thekeyfactorcouldbethetransportandserviceinfrastructure.Manybusinessesrequireeasyaccesstogoodroadandrailwaylinksandmodern municationservices.Theseensurethattheycanmeetserviceordeliverydeadlines.Forexample,EnterpriseRent-A-Carisaservicebusiness.Itscustomersinclude:businesses,whomayrequireregularcarrentalsfortheirstafforvisitorsindividualcustomers,whomaywanttohireacarwhentheyareonholidayoriftheirownvehiclehasbeeninvolvedinanaccident.Enterprisemakesitaseasyaspossibleforcustomerstouseitsservices.Forexample,businesscustomersmayneedacardeliveredtotheirdoorstep.Alternatively,retailcustomerscanuseEnterprise’suniquepick-upservice,wherethecustomerwillbecollectedfromtheirlocationandtakenbacktothebranchtocollectthecar.Customerscanalsopickupcarsdirectfrombranches,soallEnterprisesitesneedtohavegoodtransportationlinksandeasyaccess.Theyalsoneedtobeclosetotheircustomers.ThishelpstoensureEnterprisecankeepitspromisetocustomersonthespeedandefficiencyofitsservice.TherehasthreemodelsaccordingtothedifferentimportantFirstisthefacilitynearcustomersshowedinfigure1,thedistributioncentreislocatednearthecustomer.Inthissatiation,itismainlyduetotheoutboundcosthigherthantheinboundcost.Thosedistributionismainlyfocusonprovidingserviceforthecustomers..Forcommercialdistributioncentre,themaincustomersaresupermarketsandretailstores,locatedinthedenselypopulatedce,inordertoimprovetheservicelevel,andconsidertheeffectofotherconditionsaswell,distributioncentresareusuallysetontheedgeofthecitySecondisthefacilitynearrsshowedinfigure2.Comparedwiththefirstmodel,distributioncentreclosetothers,itcanimprovethereliabilityofthesupplyandcanreducetheinventoryofthemanufacturers.Singlerisgenerallyfarfromdemandcebutalsoscattered.Thirdisthecompromisemodelshowedinfigure3.Whenthereissuchalotofaspectsthattheorganizerneedtoconsidered,thelocationofdistributioncentrecannotbedirectlydecidedthatwhetheritshouldbenearthecustomerorther,thereisalwaysacompromisemodel.However,therehastwoapproachthatcanmakethelocationdecisionmoreThefirstapproachisinfinitesetapproach,whichusesgeometricargumenttofindthebestlocation,assumingthattherearenorestrictionsonsiteavailability.Aftermakingadecisionaboutthegeographicalregionandcountry,anorganizationhastolookinmoredetailattheareas,towns,cities,andindividualsites.Thereareseveralwaystheycanapproachthesedecisions,andthebestdependsonspecificcircumstances.Oneapproachthatisnot mendedisalpreference.Themainmethodis“CentreofGravity”,itisbasedonacentreofgravityofsupplyanddemand.TheCentreofGravityMethodisamathematicaltechniqueusedforfindingthelocationofadistributioncentrethatwillminimizedistributioncosts.Themethodtakesintoaccountthelocationofmarkets,thevolumeofgoodsshippedtothosemarketsandshipcostsinfindingthebestlocationforadistributionThefirststepinthecentreofgravitymethodistocethelocationsonacoordinatesystem.Theoriginofthecoordinatesystemandthescaleusedarearbitrary,justaslongastherelativedistancesarecorrectlyrepresented.Thiscanbedoneeasilybycingagridoveranordinarymap.ThecentreofGravityisdeterminedusingequations𝑋𝑂

∑𝑋𝑖

(X0,Y0)–coordinatesofthecentreof(Xi,Yi)–coordinatesofeachcustomerandWi–expecteddemandatcustomerI,orexpectedsupplyfromrSincethenumberofcontainersshippedeachmonthaffectscosts,distancealoneshouldnotbetheprincipalcriterion.Thecentreofgravitymethodassumesthatcostisdirectlyproportionaltobothdistanceandvolumeshipped.Theideallocationisthatwhichminimizestheweighteddistancebetweenthewarehouseanditsretailoutlets,wherethedistanceisweightedbythenumberofcontainersshipped.Oneweaknessofthecentreforgravitylocationisthatitmaynotconsiderthehighestdemandandthesuggestedlocationmightnotbepractical.ForAnotherapproachisfeasiblesetapproach,whichiswherethereareonlyasmallnumberoffeasiblesitesthatmanagershavetocompareandthenchoosethebest.Thisapproachprovideavariationonthecostingmodelwhichcanidentifythebestnumberoffacilities.Costingmodelisthatfeasiblesetapproachesidentifyavailablesites,comparethem,andfindthebest.Anobviousysiscalculatesthetotalcostofworkingfromeachlocationandfindsthecheapest.Inpractice,manyofthecostsofrunningafacilityarefixedregardlessofitslocation.InadditionthequalitativeinformationcanbeconsideredinascoringItdecidethemostimportantfactorsforlocations,giveeachfactora possiblescorethatshowsitsimportance,considereachlocationinturnandgiveitanactualscoreforeachfactor,uptothe um,addthetotalscoreforeachlocationandfindtheh

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