Supply chain modelling using world leading software
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Supply Chain Designer
   
 
Supply Chain Designer can help you make decisions regarding the current cost and service levels by customer and product group, site selection and location for manufacturing and distribution facilities, which suppliers to use, transport modes, inventory location and customer serving methods. 
   
 
 

Graphics

 
As well as providing detailed reports on sites, flows and costs, the powerful map-based graphics within CAPS allow you to understand exactly what is happening within a logistics network. The flow of goods and the cost to serve customers can be displayed at product level.

If you are modelling CO2, reports can be produced of the emissions associated with customers and products.

   

Networks

Networks in the CAPS Supply Chain Designer can be built to reflect real-life supply chains.  Different types of site can be defined within the model, e.g.
  • Suppliers
  • Production plants
  • Warehouses
  • Cross dock centres
  • Customers

Sites may be real sites or potential sites that are included for assessment purposes.

Lanes are defined to connect these sites, where there is a possible transport link.  As CAPS contains road databases for most countries in the world, lanes can contain road distances.  Alternatively, times and distances can be taken from other planning systems.

 
   

A simplified network may look like this:

   
   

   
   

Plants
   
   

Warehouses
   
   

Crossdocks
   
   

Customers
   
           
 
Supply and demand can be defined at product level and applied to sites and lanes, where they can handle those products.  Bills of materials can be defined where sites convert products into other products.
   
 

Cost Models

   
 
CAPS cost models can be applied to either sites or lanes to reflect the actual costs incurred in a supply chain.  Depending on the level of detail required in a project, costs can be expressed in a simple or complex manner.  Costs can be described either for sites and lanes, or for particular products at sites and lanes.  Examples of the cost models are. 

Fixed Site Costs

  • fixed cost if open, possibly reflecting different property costs
  • fixed cost according to the level of throughput, to reflect different levels of production or materials handling technology

Variable Site Costs

  • cost per unit, possibly reflecting different labour rates
  • cost per unit according to the level of throughput, to reflect economies of scale

Lane Costs

  • cost per unit
  • cost per unit mile
  • cost per unit according to volume
  • cost per load, one way or two way
  • ferry/tunnel costs
  • rail or air freight tables
  • LTL or FTL rates tables
  • duty payments and drawback 

It is possible to define a number of transportation cost models and the software will choose the least cost for a particular lane.  Custom macros can also be written to calculate costs during the modelling process.

   
                 
 

Emissions Models

   
 
Emissions can be described either for sites and lanes, or for particular products at sites and lanes, in the same way as costs.

Emissions at plants can be used to illustrate the impact of manufacturing and when applied to lanes will show the impact of transport. As lanes can represent different transport modes, the different levels of emissions associated with air, sea and road freight can be modelled.

The system can be set up to:

  • calculate the emissions of the current supply chain
  • re-design the supply chain to minimise emissions
  • re-design the supply chain to minimise costs with a defined reduction in emissions
   
                 
 

Optimisation

   
 
The CAPS Supply Chain Designer contains the CPLEX solver from ILOG, which gives a true mathematical optimisation of the problem presented to it.

In addition to the network definition and cost models, the solver also takes into account specific user-defined constraints, such as:

  • the capacities of sites and lanes, defined either as total flow or the flow of particular products
  • the minimum flow through sites and lanes, either in total or at product level
  • whether sites can receive supply from multiple sources or whether they must be single sourced
  • any limits to the number of sites, eg "open no fewer than 2 and no more than 4 warehouses"
  • the maximum emissions allowed

A Scenario Manager within the Supply Chain Designer allows the modeller to keep track of the many changes to data, cost models and settings that take place in a project.

   

Links

 
Logistech's paper on logistics network optimisation
Logistech's paper on emissions modelling
Supply Chain Designer brochure

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