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QICID: 20105

Title: Use What You Have

Copyright: 2005, ASQ
Author: Jones, Erick C.; Hain, Josephine A.
Organization: University of Nebraska-Lincoln, Lincoln, NE; Air Control Science, Boulder, CO
Subject: Case study,Cost modeling,Organizational improvement initiatives,Supply chain management;
Series: Six Sigma Forum Magazine, Vol. 4, No. 3, May 2005, pp. 23-28

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Abstract: Most technical organizations use costly software and consultants to evaluate their supply chain networks. Engineering managers must make some tradeoffs during network design, but no matter what the situation, they should first consider using an internal team and an established network design model. These model provide a framework for analyzing data and give managers insight into effective plans based on the company's goals, commitments, and resource constraints. A case study describes two models, each with different objectives. The capacitated plant location model aims to minimize the cost of the supply chain network by formulating the problem into an integer program. The gravity location model establishes an optimal location based on cost inputs.

Number of pages: 6
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