01 + 02_Production Networks and Plant Location Flashcards

1
Q

**

Strategic Planning

A

Production Networks and Plant Location

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2
Q

Tactial Planning

A

Design of Production Systems:
- job shop
- flow show
- cellular manufacturing

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3
Q

Operative Planning

A
  • Demand Forecasting
  • Master Production Scheduling
  • Material and capacity requirements planning
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4
Q

Demand Forecasting

Operative Planning

A
  • prediction of the future development of the demand
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5
Q

Master Production Scheduling

Operative Planning

A
  • planning and coordination of production schedules for various production sites of a company
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6
Q

Material and Capacity requirements planning

Operative Planning

A
  • Planning of detailed requirement quantities, lot sizes, due dates
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7
Q

Classic Transportation Problem

A
  • multiple production locations
  • multiple customer regions
  • Optimization Problem: Determine minimum cost transportation quantities
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8
Q

Vogel’s approximation method

A
  • minimize the maximum additional costs for not selecting the optimum supplier or destination
  • using additional costs incurred by selecting second best (instead of best) supplier or destination as a priority rule for the selection of transportation links
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9
Q

Assumptions Vogler’s approximation

A
  • single period
  • single product
  • only transportation and plant specific production costs considered
  • linear cost structure
  • all plant-to-customer zone assignments feasible
  • unlimited transportation capacities
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10
Q

Reasons for opening new plant

A
  • increasing capacity
  • modernization
  • entering new markets
  • growth of free trade zone
  • lower labour costs
  • strategic issues
  • benefitting from exchange rate trends
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11
Q

Classical Transportation Problem
How many constraints are modeled?

5 rows; 4 columns

A

5 + 4 = 9

  • including the non-negativity constraints 9 + (4x5) = 29
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12
Q

There are 5 potential plant sites of which 3 have to be chosen:

How many iterations of Vogel’s approximation do you need to perform?

A

n! / r! * (n-r)!

5! / 3! x (5-3)!
120 / (6x2) = 10

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