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  • Essay / Supply Chain Management - 857

    Some of the challenges facing manufacturing industries in today's business world due to increasing global competition are how to systematically respond to customer requirements and demands at the lowest possible cost and remain competitive in the sector. walk. In order to achieve this goal, effective and efficient supply chain management is the main priority. These have led companies to control their costs more than ever while simultaneously optimizing production processes, facility locations and distribution operations through supply chain management and at the same time granting greater great attention to the needs of their customers. “A supply chain is a network of facilities (e.g. manufacturing plants, distribution centers, warehouses, etc.) that perform a set of operations ranging from acquiring raw materials, transforming those materials into products intermediate and finished products, until the distribution of finished products to customers” (Melo et al, 2003). Bhaskaran and Leung described the manufacturing supply chain as an integrative approach to managing the flow of information and products between manufacturers, suppliers, retailers and customers. A typical supply chain includes suppliers, production sites, storage facilities and customers. It involves two basic processes closely integrated with each other: (i) the production planning and inventory control process, which deals with manufacturing, storage and their interfaces, and (ii) the distribution and logistics process, which determines how products are picked up and transported from the warehouse or distribution centers to retailers. The above tasks involve both strategic and operational decisions, with time horizons ranging from several years to middle of paper......and at this destination, some of these companies have depots or centers of distribution that they control in a particular region. So, in order to distribute the actual quantity of products to be allocated to these depots and then to demand points so that customers in each region are satisfied with the availability of their products at minimum distribution cost, companies are therefore concerned about optimal placement from their factories, distribution centers, warehouses, etc. to minimize transportation costs and facility opening costs. For the above reason, this work seeks to answer the following questions: • Where are the optimal locations for facilities based on customer demand? • Which distribution centers should serve each customer? • What will be the impact of number of distribution centers on total costs? • How will the cost of transportation impact total costs??