Logistics network design

Logistics cyberspace determinationLOGISTICS bring in cogitation bearing is concerned with the object of the number and site of warehouses and manufacturing plants, allocation of customer demand, distribution of warehouses to harvest-timeion plants. The ruff configuration must be able to deliver the goods to the customers at the to the lowest degree cost (commonly used fair game) go satisfying the service level needs. In most logistics network instauration models, the customer demand is exogenous and define as a consistent quantity for distributively product. Such a uniform demand shelter does not take advantage of the speculation that assorted customers have different sensitivity to slant collar-time.Logistics network intent is a vital strategic ending for Audi. It is very important to portion the customer demand points to warehouses, and allocate products from warehouses to production plants. As Audi have grow more global, there has been a trend towards outsour cing the logistics function to third-party logistics (3PL) firms, so that manufacturing companies provoke focus their efforts on their core competencies. Thus, 3PL companies must have the capability to design efficient and utile logistics network so as to add value to their clients business. Audi is excellent in this.In Audi Company, we see three new models for logistics network design with special focus on the perspective of 3PL companies. The chief objective of these new models is to increase the effectiveness of the resulting network design and the utilization of facilities in the network.The three models encompass the following areasLogistics network design with place delivery lead time,Logistics network design with harm discount, andConsolidated logistics network design using consolidation hubs.A new perspective of Audi that incorporates into logistics network design are, two factor namely delivery lead time and price discount that are usually not considered. This shows tha t designing network with differentiated delivery lead time bottom reduce the network cost, while the other shows that combining pricing decision and demand management can result in a network design with higher net profits, combines tactical decision for inventory replenishment policy with strategic decision for consolidated network design. These shows by adding consolidation hubs at suitable locations come out to the suppliers, we can leverage on concave Audis cost to reduce the boilers suit network cost. net design and inventory replenishment policy at the same time our findings provide managerial insights into how 3PL companies can and their results to improve their business. Audi design more effective logistic networks to support their clients and Audi is applicable to the order fulfilment business exploit and managing suppliers for manufacturers. As every part is made by Audi but work is divided into different department, for example tyre, machine etc are produced in differ ent plant.Audi is designing a network concord to demand classes segment according to their sensitivity to delivery lead time. This shows that potential network cost nest egg can be achieved by designing a network with segmented customer demand as compared to a network without segmented demand. For the segmented demand case, the bypass LT demand customers are served from their local warehouse or a nearby warehouse which can satisfy the delivery lead time requirement while the long LT demand customers are served nowadays from the hub which is located further away. In addition, the model explored the multiple facilities grouping system which groups facilities which can serve the same customer location within the short LT requirement. It was shown that multiple deftness grouping can reduce the network cost, particularly for networks with lower inventory holding cost and high fixed facility cost.Network Design Key IssuesPick the optimal number, location, and size of warehouses a nd/or plantsDetermine optimal sourcing strategy-Which plant/vendor should produce which product?Determine best distribution channels-Which warehouses should service which customers?Data for Network DesignA listing of all productsLocation of customers, stocking points and sourcesDemand for each product by customer locationTransportation ratesmemory costsShipment sizes by productOrder patterns by frequency, size, and season, messageOrder processing costsCustomer service goals