Date post: | 18-Dec-2015 |
Category: |
Documents |
Upload: | morris-small |
View: | 215 times |
Download: | 1 times |
Contact Information2
Chris Neuman Phone 442-6426 Email 1: [email protected] Office: Shadowy and Vague
Office hours: By appointment (after 4:30) Intros…
Website3
https://ulearn.ualberta.ca All class material will be posted
(spreadsheets, lecture slides, etc) Grade info, digital dropbox, course
conferencing
Homework Policies5
Code of Student Behaviour Peer help is the best way to learn Discussion of HW problems is healthy and
encouraged Just don’t copy each other’s work.
Operations Research6
The Science of Better Quantitative tools used to make better
decisions Broad range of applications, broad range
of tools We are specifically addressing …
Distribution Management7
The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.
- Council of Logistics Management
DM Cost Drivers8
Inventory Raw materials, WIP, finished goods
Transportation Carrier selection, shipment size, distance and travel time
Facilities (production and storage) What? When? Where? Why?
Information Availability, price, forecasting demand, shipping options
Planning Levels9
Strategic: long-term, long-range, potentially reshaping the way business is done
Tactical: medium-range, designed to raise competitiveness and customer service levels
Operational: day-to-day; Efficiency at low cost
Examples10
Distribution network configuration Strategic - a new flow of goods throughout the
network Inventory control
Tactical - determine inventory policy to minimize ordering and holding costs
Crossdocking Tactical - warehouses serve as coordinators and as
transshipment points but do not keep stock themselves
Examples11
Integration of inventory and transportation Tactical - determine balance between inventory and
transportation costs
Vehicle fleet management Operational - assign loads to vehicles and determine
vehicle routes
Examples12
Truck routing Operational - determine the minimal length route (time
or distance) to follow Packing problems
Operational - pack items such that the number of bins used is minimized
Trends13
Reality: DM problems are computationally intensive, complex, and multi-faceted
Intuition plays a major role in how we approach DM problems
Tools Descriptive models – what’s happening now? Prescriptive models – what should we do?
Course focus14
The focus in this class is on mathematically well-defined problems that can be solved using algorithmic and heuristic techniques
IS, outsourcing, 3PL and 4PL, strategic partnerships, B2B and many other buzzwords are difficult to quantify and will be addressed lightly (MGTSC 488)
Why Models?17
Reality bites Data overload, but not information overload Reliance on computers: Data is masked Allocation of responsibility (must justify decisions)
Decisions and numbers Many decisions are numbers
How many distribution centers do we need? Capacity of new plant? How many workers assigned to line?
Most decisions depend on numbers Should we introduce a new product? Make or buy?
Why Models? 18
Data + Model = Information Managers who do not understand models
either: Don’t put faith in analysis, lose valuable
information, or Put too much faith in analysis, are swayed by
stacks of computer output
Why Models? 19
Tradeoff analysis Provides a structure for DM Powerful engineering tool, but a key
management skill too (re-engineering) Value of model is its usefulness Modeling is an iterative process
What is xij?21
x11 x12 x13 x14
x21 x22 x23 x24
X31 x32 x33 x34
Plant 1 Plant 2 Plant 3 Plant 4
Grove 1
Grove 2
Grove 3
More familiar22
Costs PLANT AIRPORT BushelsGROVE Ocala Orlando Leesburg Jacksonv. St. Peter. AvailableMt. Dora 21 50 40 35 38 275,000 Eustis 35 30 22 42 52 400,000 Clermont 55 20 25 70 45 300,000 W. Garden 43 25 37 58 31 500,000 Capacity 200,000 600,000 225,000 350,000
Shipments PLANT AIRPORT TotalGROVE Ocala Orlando Leesburg Jacksonv. St. Peter. ShipmentsMt. Dora 200000 0 0 75000 0 275,000 Eustis 0 175000 225000 0 0 400,000 Clermont 0 300000 0 0 0 300,000 W. Garden 0 125000 0 0 375000 500,000 Total 200,000 600,000 225,000 75,000 375,000 37775000
Total cost
A Note on Spreadsheets24
The good things Lift the algebraic curtain Powerful what-if tools Can analyze, optimize, simulate, build DSS, etc. 40 million users One in every office