Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain

by Michael Watson

Using strategic supply chain network design, companies can achieve dramatic savings from their supply chains. Now, experts at IBM and Northwestern University have brought together both the rigorous principles and the practical applications you need to master. You’ll learn how to use supply chain network design to select the right number, location, territory, and size of warehouses, plants, and production lines; and optimize the flow of all products through your supply chain even if extends around the globe. The authors present better ways to decide what to manufacture internally, where to make these products, which products to outsource, and which suppliers to use. They guide you in more effectively managing tradeoffs such as cost vs. service level, improving operational decision-making by integrating analytics throughout supply chain management; and re-optimizing regularly for even greater savings. Supply Chain Network Design combines best practices, the latest methods in optimization and analytics, and cutting-edge case everything you need to maximize the value of supply chain network design. For all supply chain executives, managers, strategists, and analysts; and for all students, instructors, and researchers in advanced supply chain management and/or logistics courses.

Genres: Nonfiction, Business

424 pages, Kindle Edition

First published July 1, 2012

Reviews

[Jonathan Lu · Rating 3 out of 5]

Decent book on this topic - very rudimentary 1st or 2nd year grad-level, that anyone who has spent time in industry will not get very much out of beyond hearing a few good success stories from the field. Focused much on giving an introduction of gate to gate modeling from input to output. A few wise quotes to remember:
"you need to keep in mind that the objective of the model is to make a good decision for the supply chain. This is why modeling is more of an art than a science." & "It should be noted that the definition of a good decision almost certainly inclueds some timeline. Businesses move fast. A great decision delivered too late is much worse than a good decision delivered in time to act. Keep in mind the adage attributed to Votaire: 'the perfect is the enemy of the good.'" [189]
"There is not shame in finding a bug during the development process [...] This is why the testing of programs is just as important as writing them. In fact, it is important to note that programs are tested during the writing phase." [198]

[Yor · Rating 4 out of 5]

Good reading to perform E2E Supply Chain Network Design. From theory to best practice, approach to doing a good study of the case, and recommendation during the process.

Some phrases that I would like to keep in mind:

“Typical Steps to Complete a Network Design Study
In a typical project, you are likely to run into problems with the data as well as organizational challenges of working on a project that impacts many people within a firm. To get a network design study done, you need to treat it as a project and manage it as you would manage any complex project within a company. Of course, there are elements unique to a network design study.”

“Broadly, any network design project can be broken into five main steps or phases:
1. Model scoping and data collection phase
2. Data analysis and validation phase
3. Baseline development and validation phase
4. What-if scenario analysis
5. Final conclusion and development of recommendations”


Step 1: Model Scoping and Data Collection
“Before you start any project, it is important to first understand the questions that are to be answered and the associated parts of the supply chain that may be impacted. This step may seem trivial and is often overlooked, but it is very important to have a clear understanding of what decisions are being made, and which parts of the supply chain are open to change and which parts are not.”