Chương-8-Vi-tri-thiet-bi-day bkel.pptx

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About This Presentation

Before starting production or manufacturing in a concern, space and machines
should be arranged properly depending on the type of production system and
the type of products to be manufactured or produced. Facility layout determines
the arrangement of machineries and various facilities following the ...


Slide Content

Chapter 8: Facility location-allocation theory Le Duc Dao, PhD Department of Industrial Engineering Mechanical Faculty Ho Chi Minh City, University of Technology Phone: 0937286746 Email: [email protected] 1

Supply chain system problem 2

Problem in Supply chain Data flow management Distribution problen Product replenishment problem (fruit, Vegetable..) Location-Allocation probem 3

Factory location-allocation Affected factors for factory allocation 4 Factor Location Transportation Market Labor Power Climate condition Water Land Opponents Disposal of waste

Inside google headquaters 5 https://www.youtube.com/watch?v=D-ixbvL5y8M&t=135s

Method for Factory location-allocation Resource Location-Allocation in factory Qualitative selection method Survey Seft -defined relationship such as A-E-I-O-U Quantitative selection method The importation of affected factor Quantitative and profit-cost analysis 6 Mathematical modeling Modeling method

Algorithm: We will select the plan based on weighted factors Determine the factors and weights Determine the score of each implementation plan related to mentioned factors Determine the overall score We will choose the plan has the largest score 7 Factory location-allocation

W eighted coefficient method 8 The Manager concern three factors for building the new factory. After evaluation, the score has been listed in the table below. Factor Weight P – A P– B P – C Labor skill 0.5 70 70 50 Preparedness of material 0.3 60 40 90 Potential market 0.2 70 95 60 Which plan should be used ?

9 Factor PA – A PA – B PA – C Score W-score Score W-score Score W-score Labor skill (0.5) 70 35 70 35 50 25 Preparedness of material (0.3) 60 18 40 12 90 27 Potential market (0.2) 70 14 95 19 60 12 Overall Score 67 66 64 Overall Score = score of P-A Weighted factor score   W eighted coefficient method

10 Factor PA – A PA – B PA – C Score W-score Score W-score Score W-score Labor skill 70 31.5 70 31.5 50 22.5 Preparedness of material 60 24 40 16 90 36 Potential market 70 10.5 95 14.25 60 9 Labor skill 66 61.75 67.5 The plan has been evaluated subjectively based on the weighted scores, thus easily causing the in-correct chosen . W eighted coefficient method What happen if we change the weighted score of factors, for example , 0.45 (Labor ), 0.4 (material preparedness), 0.15 potential market

Given the table below, could you recommend for managers the plan 11 Factor P – A P– B P – C Score W-score Score W-score Score W-score H1 (0.2) 50 80 45 H2 (0.35) 70 60 75 H3 (0.15) 60 50 70 H4 (0.3) 40 70 85  Plan ? W eighted coefficient method 2 min

Financial analysis If the fixed cost and variable cost of each production plan has been determinized, we will select the plan having the lowest cost https://www.youtube.com/watch?v=f640XIT7ZgA 12

Financial analysis The company considers three production plan with variable cost and fixed cost shown in the table Production plan Fixed cost Variable cost (unit) A 10.000.000 250 B 25.000.000 150 C 60.000.000 50 13

Financial analysis Total production cost = (fix cost ) + (variable cost ) x (Production quantity plan – A: Total cost= 10.000.000 + 250 x 250.000 = 72.500.000 plan – B: Total cost = 25.000.000 + 150 x 250.000 = 62.500.000 Plan – C: Total cost = 60.000.000 + 50 x 250.000 = 72.500.000 Plan B is the optimal Plan when production is under 250000 units/years What happen if production changed 14

Financial analysis Production cost changed according to the production quantity Total cost Production quantity 15

In class exercises – 15 min   Plan A B C Fix cost 500 300 600 Variable cost 2 3 1 Unit million VND We will make plan to build the distribution center. Recommend for the manager according to production quantity 16

Has been applied in a lots of field Hospital allocation School/University Allocation Warehouse allocation Canteen Allocation 17 Factory location-allocation model 17

Decide the distance based on Rectilinear distance: 18 Factory location-allocation model Decide the distance based Euclidean distance:

Factory location-allocation model Objective function Distance Với : 19 New location Current location Weight which is used to present the relationship between new machine/department with the current one Distance between new machine/department with the current one

We can solved it using two approach 20 Factory location-allocation model Minisum approach We minimize the weighted distance between the new machine/department with the current one Minimax approach We minimize the maximum distance from new machine/department to the current one be

Minisum approach Objective X-coordinate of the new machine will be the same with the X-coordinate of one of current machine/department 21

Algorithm Define X-coordinate Arrange X-coordinate of current machine/department by increasing order Calculate the cumulative addition of weighted If cumulative addition is larger the ½ of total , this location will be the X-coordinate of new machine/ department Similar for Y-coordinate   22 Minisum approach

If we cannot locate the new machine to the best location, the optimal location will be determined based on the objective function by choosing the min f( x,y ) 23 Minisum approach

EX: Define the new supplied warehouse for 5 firm having the coordinate (X,Y) in the table below 24 Minisum approach

Coordinate Weighted number Minisum approach 25 define x coordinate : Current Warehouse i Coordinate Weighted number Current Warehouse i

26 i Relationship between New- define y coordinate : Coordinate Minisum approach

Minisum approach Optimal location will be x=5 và y=4 Objective value 27

LINGO model 28 Result Minisum approach

Minisum approach Suppose we cannot locate the machine to the best choice, Which location (O1-O7) should be used to put the new machine 29

Minisum approach Objective of (O1-O7) O1  O2  O3  O4  30

Minisum –exercises 10 min Current equipment has been listed below Find the optimal location for new equipments and Obj Define the optimal location for new machine if we only have three potention location (6,4), (4,7), (3,8) 31 Equipment x y Weight of new-current A 1 3 6 B 2 5 8 C 1 7 3 D 8 2 4 E 6 9 3 F 5 4 1

Minimax approach Minimax approach We minimize the maximum distance from the new machine/department to the current one be Algorithm We calculate 5 optimal value 32 The optimal location will be located in the line between With The objective value c 5 /2

33 We want to locate fire station between 8 departments. Fire station should be put near all departments. You may use the minimax approach to give us the optimal location Minimax approach

Minimax approach 34 Optimal location should be ?

Minimax approach 35

Minimax Approach Lingo model Result X = 4.45 Y = 3.55 The line will be formed by A and B and it includes point (4.45, 3.55) 36

In class exercises 10 min Given the department A-K with the coordinate X,Y below. Use the minimax approach to locate the health care center to support all of departments 37 Department X Y A 3 B 9 2 C 1 6 D 5 4 E 3 3 F 7 4 G 8 2 H 9 9 K 6 6

Model for N factories/resources How can we define more than one machine/ department Objective function min f(x) = total distribution cost (the sum of transportation cost between new machine + the sum of transportation cost between new machine and current machine ) 38 Location of new machine/department Location of current machine/department Transportation cost of 1/unit form j to Transportation cost of 1/unit form j to i Distance from j to k Distance from j và i

Rectilinea r: Euclidean: 39 Model for N factories/resources

We want to locate 2 new machines to support three current machines A=(1,5), B=(4,10) and C=(10,3). The flow of machine has been listed below Build the objective function based on Rectilinear distance 40 Model for N factories/resources

41 Model for N factories/resources Rectilinear distance

Rectilinear distance lingo model Kết quả : 42 Model for N factories/resources

43 Model for N factories/resources Modeling based Euclidean distance- Answers

Relax 5 min- factory location installation affected factor https://www.youtube.com/watch?v=OshyCwH3TJM 44

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