Integrated Supply Chain Design Models

Mak, Ho‐Yin; Shen, Zuo‐Jun Max

doi:10.1002/9780470400531.eorms0414

Cited by 5 publications

(3 citation statements)

References 45 publications

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“…Mak and Shen (2010) review a number of studies that include inventory costs in the facility location problem: e.g., Shen, Coullard, and…”

Section: The Retail Store Density Problemmentioning

confidence: 99%

Retail Store Density and the Cost of Greenhouse Gas Emissions

Cachon

2011

SSRN Journal

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The density, size, and location of stores in a retailer's network influences both the retailer's and the consumers' costs. With stores few and far between, consumers must travel a long distance to shop, whereas shopping trips are shorter with a dense network of stores. The layout of the retail supply chain is of interest to retailers who have emission reduction targets and urban planners concerned with sprawl. Are small local shops preferred over large, "big-box" retailers? A model of the retail supply chain is presented that includes operating costs (such as fuel and rent for floor space) as well as a cost for environmental externalities associated with carbon emissions. A focus on exclusively minimizing operating costs may substantially increase emissions (by 67% in one scenario) relative to the minimum level of emissions. A price on carbon is an ineffective mechanism for reducing emissions. The most attractive option is to improve consumer fuel efficiency-doubling the fuel efficiency of cars reduces long-run emissions by about one-third, whereas an improvement in truck fuel efficiency has a marginal impact on total emissions. AbstractThe density, size and location of stores in a retailer's network influences both the retailer's and the consumers' costs -with stores few and far between, consumers must travel a long distance to shop, whereas shopping trips are shorter with a dense network of stores. The layout of the retail supply chain is of interest to retailers who have emission reduction targets and urban planners concerned with sprawl -are small local shops preferred over large, "big-box", retailers? A model of the retail supply chain is presented that includes operating costs (such as fuel and rent for floor space) as well as a cost for environmental externalities associated with carbon emissions. It is found that that a focus on minimizing exclusively operating costs may substantially increase emissions (by 67% in one scenario) relative to the minimum level of emissions. A price on carbon is an ineffective mechanism for reducing emissions. The most attractive option is to improve consumer fuel efficiency -doubling fuel efficiency of cars reduces long run emissions by about one third -while an improvement in truck fuel efficiency has a marginal impact on total emissions.

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“…Mak and Shen (2010) review a number of studies that include inventory costs in the facility location problem: e.g., Shen, Coullard, and…”

Section: The Retail Store Density Problemmentioning

confidence: 99%

Retail Store Density and the Cost of Greenhouse Gas Emissions

Cachon

2011

SSRN Journal

View full text Add to dashboard Cite

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“…Shen and Qi [40] further incorporate operational routing costs into the model. For surveys of using a continuum approximation for integrated supply chain design models, readers may refer to Shen [38] and Mak and Shen [29].…”

Section: Literature Reviewmentioning

confidence: 99%

Agility and Proximity Considerations in Supply Chain Design

2017

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Strategic supply chain design decisions are critical to the long-term success of a business. Traditional facility location models for supply chain design focus on the trade-offs between the costs and benefits of proximity, i.e., the distance between facilities and customers. These strategic-focused models do not consider the supply chain’s agility, i.e., its ability to quickly respond to unexpected fluctuations in customer needs. In this paper, we study the problem of designing a supply chain distribution network under demand uncertainty and analyze how the optimal design characteristics of proximity and agility depend on various input parameters. We are able to draw managerial insights on how agility considerations may invalidate well-established and widely accepted qualitative results derived from traditional models. In particular, we show that it is optimal to increase the density of distribution centers (DCs) when the shortage penalty cost increases, and to decrease the density of DCs when a certain unit transportation cost parameter increases. Through these findings, our work conveys the message that traditional, proximity-based facility location models can be inadequate for designing modern responsive supply chains, and calls for the need to develop a new class of models for the task. This paper was accepted by Yossi Aviv, operations management.

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“…In the literature, the integrated approach has been extensively applied to the setting of supply chain network design (e.g., Shen et al 2003, Atamtürk et al 2012, Mak and Shen 2012. For reviews of this stream of work, refer to Shen (2006) and Mak and Shen (2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Infrastructure Planning for Electric Vehicles with Battery Swapping

2013

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E lectric vehicles (EVs) have been proposed as a key technology to help cut down the massive greenhouse gas emissions from the transportation sector. Unfortunately, because of the limited capacity of batteries, typical EVs can only travel for about 100 miles on a single charge and require hours to be recharged. The industry has proposed a novel solution centered around the use of "swapping stations," at which depleted batteries can be exchanged for recharged ones in the middle of long trips. The possible success of this solution hinges on the ability of the charging service provider to deploy a cost-effective infrastructure network, given only limited information regarding adoption rates. We develop robust optimization models that aid the planning process for deploying battery-swapping infrastructure. Using these models, we study the potential impacts of battery standardization and technology advancements on the optimal infrastructure deployment strategy.

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Integrated Supply Chain Design Models

Cited by 5 publications

References 45 publications

Retail Store Density and the Cost of Greenhouse Gas Emissions

Retail Store Density and the Cost of Greenhouse Gas Emissions

Agility and Proximity Considerations in Supply Chain Design

Infrastructure Planning for Electric Vehicles with Battery Swapping

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