Facility location design methodology of global supply network (A proposal of cost-based facility location design methodology)

For manufacturing industries to promote globalization, it is important to optimize the strategic design of supply networks. In early stages of strategic design of global supply networks, with regards to the market strategy (what sale volume of which product to which market) and the manufacturing str...

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Main Authors: Yasutaka KOGA, Satoshi YOSHIDA, Toshiya KAIHARA, Nobutada FUJII
Format: Article
Language:Japanese
Published: The Japan Society of Mechanical Engineers 2015-12-01
Series:Nihon Kikai Gakkai ronbunshu
Subjects:
Online Access:https://www.jstage.jst.go.jp/article/transjsme/82/833/82_15-00287/_pdf/-char/en
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author Yasutaka KOGA
Satoshi YOSHIDA
Toshiya KAIHARA
Nobutada FUJII
author_facet Yasutaka KOGA
Satoshi YOSHIDA
Toshiya KAIHARA
Nobutada FUJII
author_sort Yasutaka KOGA
collection DOAJ
description For manufacturing industries to promote globalization, it is important to optimize the strategic design of supply networks. In early stages of strategic design of global supply networks, with regards to the market strategy (what sale volume of which product to which market) and the manufacturing strategy (production capacity and number of manufacturing facilities), we have to optimize the facility locations. At this point, instead of determining the details of product types and delivery routes, we should focus on minimizing the total cost of the supply networks. After performing a conceivable risk assessment, we determine the locations of manufacturing facilities. In this paper, based on the information that can be learned in early stages of strategy design, we build a model of one-echelon supply network for facility locations design problem with capacity constraints. Next, we perform numerical experiments of the optimization using mixed-integer programming. As a specific example, the manufacturing plant is assumed to supply products to the 43 global markets. Our experiments evaluated the effectiveness of the proposed method with respect to this facility locations design problem.
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spelling doaj.art-b1761e6d3c7c4dfb957386d9452deda22022-12-22T02:47:21ZjpnThe Japan Society of Mechanical EngineersNihon Kikai Gakkai ronbunshu2187-97612015-12-018283315-0028715-0028710.1299/transjsme.15-00287transjsmeFacility location design methodology of global supply network (A proposal of cost-based facility location design methodology)Yasutaka KOGA0Satoshi YOSHIDA1Toshiya KAIHARA2Nobutada FUJII3Toshiba CorporationToshiba CorporationGraduate School of System Informatics, Kobe UniversityGraduate School of System Informatics, Kobe UniversityFor manufacturing industries to promote globalization, it is important to optimize the strategic design of supply networks. In early stages of strategic design of global supply networks, with regards to the market strategy (what sale volume of which product to which market) and the manufacturing strategy (production capacity and number of manufacturing facilities), we have to optimize the facility locations. At this point, instead of determining the details of product types and delivery routes, we should focus on minimizing the total cost of the supply networks. After performing a conceivable risk assessment, we determine the locations of manufacturing facilities. In this paper, based on the information that can be learned in early stages of strategy design, we build a model of one-echelon supply network for facility locations design problem with capacity constraints. Next, we perform numerical experiments of the optimization using mixed-integer programming. As a specific example, the manufacturing plant is assumed to supply products to the 43 global markets. Our experiments evaluated the effectiveness of the proposed method with respect to this facility locations design problem.https://www.jstage.jst.go.jp/article/transjsme/82/833/82_15-00287/_pdf/-char/englobal supply networkfacility locationminimizationstrategy designmixed integer programing
spellingShingle Yasutaka KOGA
Satoshi YOSHIDA
Toshiya KAIHARA
Nobutada FUJII
Facility location design methodology of global supply network (A proposal of cost-based facility location design methodology)
Nihon Kikai Gakkai ronbunshu
global supply network
facility location
minimization
strategy design
mixed integer programing
title Facility location design methodology of global supply network (A proposal of cost-based facility location design methodology)
title_full Facility location design methodology of global supply network (A proposal of cost-based facility location design methodology)
title_fullStr Facility location design methodology of global supply network (A proposal of cost-based facility location design methodology)
title_full_unstemmed Facility location design methodology of global supply network (A proposal of cost-based facility location design methodology)
title_short Facility location design methodology of global supply network (A proposal of cost-based facility location design methodology)
title_sort facility location design methodology of global supply network a proposal of cost based facility location design methodology
topic global supply network
facility location
minimization
strategy design
mixed integer programing
url https://www.jstage.jst.go.jp/article/transjsme/82/833/82_15-00287/_pdf/-char/en
work_keys_str_mv AT yasutakakoga facilitylocationdesignmethodologyofglobalsupplynetworkaproposalofcostbasedfacilitylocationdesignmethodology
AT satoshiyoshida facilitylocationdesignmethodologyofglobalsupplynetworkaproposalofcostbasedfacilitylocationdesignmethodology
AT toshiyakaihara facilitylocationdesignmethodologyofglobalsupplynetworkaproposalofcostbasedfacilitylocationdesignmethodology
AT nobutadafujii facilitylocationdesignmethodologyofglobalsupplynetworkaproposalofcostbasedfacilitylocationdesignmethodology