Logistics Network Design with Differentiated Delivery Lead Time: A Chemical Industry Case Study

Logistics Network Design with Differentiated Delivery Lead Time: A Chemical Industry Case Study

Most logistics network design models assume exogenous customer demand that is independent of the service time or level. This paper examines the benefits of segmenting demand according to lead-time sensitivity of customers. To capture lead-time sensitivity in the network design model, we use a facili...

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Bibliographic Details
Main Authors: CHEONG, Michelle Lee Fong, Bhatnagar, Rohit, Graves, Stephen C.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2004
Subjects:
Logistics Network Design
Demand Classes
Benefits
Insights
Artificial Intelligence and Robotics
Operations and Supply Chain Management
Operations Research, Systems Engineering and Industrial Engineering
Online Access:https://ink.library.smu.edu.sg/sis_research/1177
https://ink.library.smu.edu.sg/context/sis_research/article/2176/viewcontent/Logistics_Network_Design_with_Differentiated_Deliv.pdf
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Institution: Singapore Management University
Language: English
Description
Summary:Most logistics network design models assume exogenous customer demand that is independent of the service time or level. This paper examines the benefits of segmenting demand according to lead-time sensitivity of customers. To capture lead-time sensitivity in the network design model, we use a facility grouping method to ensure that the different demand classes are satisfied on time. In addition, we perform a series of computational experiments to develop a set of managerial insights for the network design decision making process.

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