Module 3 - Background

The following information will give you a good background on the importance of facility location decisions in supply chain management. Take a look at your Case Assignment and your SLP assignment for this module, and then review the information presented here for ideas as to how to proceed.

This first article discusses service-supply chain management.

Cohen, M. A., Agrawal, N., & Agrawal, V.  (2006, May/June). Achieving breakthrough service delivery through dynamic asset deployment. Interfaces, 36(3), 259-271. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

Many firms have shifted their focus from their products to their customers and the value derived from owning and using the products. They see after-sales service as an important source of revenue and profit, customer acquisition and retention, and competitive differentiation. However, they also find it challenging to manage their service-supply chain. Service organizations must position and manage service-supply-chain resources optimally to support the delivery of after-sales service. They must also develop capabilities to respond rapidly to the demand for service in a cost-effective manner. To succeed in implementing a service-centric strategy, firms must determine what items in their products' service bill-of-material hierarchy should be deployed throughout their geographical hierarchy of service support locations. They must make these complex and interrelated decisions in anticipation of service demand, which is uncertain. Firms must also be flexible and should understand the mechanisms in a service-supply chain needed to fulfill customers' demands for service and the resulting demands for support assets and capacities. Dynamic asset deployment (DAD), a collection of management policies that promote this flexibility, can be used to develop the capabilities needed to effectively and profitably deliver services. These policies require a real-options-based optimization approach to decision making.

This article discusses Hanes' implementation of their capacity planning system.

Hill, S. (2000, May). Hanes printables: Supply chain optimizing. Apparel Industry Magazine, 61(5), 31-38. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

When Sara Lee Corp. embarked on numerous supply chain initiatives, the company's Activewear division (which has since segmented into 3 separate divisions of Hanes Printables, Champion and Casualwear) tackled its planning system. In the project, according to Geoff Ross, operations planning manager at Hanes Printables, the goals were to streamline the planning process, remove the guesswork and refocus the planners on sequencing and monitoring. The objective was to improve capacity planning cycles. Other objectives included integrating capacity planning into operational processes; reducing both WIP and finished goods inventories, and improving service projections. Hanes Printables went live with i2 Technologies' Rhythym Supply Chain Planner this past June, creating approximately 52,000 operational plans on a 15-month horizon for this vision alone, notes Jim Serpan, operations and capacity planning manager.

Here is an article that looks at the 4 P's of logistics.

Turnbull, L. (2006, April). Mind your P's. Canadian Transportation Logistics, 109(4), 50. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

Evolving interpretations of logistics and supply chain education require a "broadening" of the marketing concept. The four "P's" are still relevant, still crucial; but logistics professionals have to become more resourceful if they are to successfully meet the obligations of "Place" and navigate the turbulent waters of "accountability."

Case Assignment Reading

Crammer, L. J. & Wegfahrt, A. M., (2006, Oct/Nov). Ranked #9 proximity to major markets. Area Development Site and Facility Planning, 41(5). 26-27. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.