Supply chain re-design in the motors industry

RODRIGUEZ, MARIA ANALIA; HARJUNKOSKI, IIRO; GROSSMANN, IGNACIO E.

Pittsburgh

Encuentro; Enterprise-wide Optimization Annual Meeting; 2011

Carnegie Mellon Universitity - Center of Advanced Process Decision Making

This project is about the optimal re-design of supply chain in the motors industry. The main problem consists in a three echelon supply chain where we have multi-product plants, distribution and service centers and customers plants. Most relevant decisions of this problem are to decide where should we place the plants and distribution or service centers and which are the most convenient investments. That is, if we should install, rent o expand in each location. Stocking capacity is also decided as well as the connections between the three levels. One last main decision is regarding how demand should be satisfied. Since we are focused on the production and distribution of electric motors, when they fail in customer plants, the provider company can replace them either with new or repaired motors depending on the customer and motor type. So main challenges can be sum up as follows: - First we consider several products to produce and deliver. - Demand is uncertain due to motor failure following a Poisson process. - Demand can be satisfied using new or repaired motors. - Customer plants can have storage capacity and they define different service level for their product which means the maximum time they expect to satisfy their demand of motors. Nota: este trabajo fue presentado como parte del proyecto desarrollado por la Dra. Rodríguez como investigadora invitada en el Center of Advanced Process Decision Making de Carnegie Mellon University de Agosto a Noviembre de 2011.