Michael Watson - Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain

Applying Optimization and Analytics to the Global Supply Chain

Michael Watson, Sara Lewis,
Peter Cacioppi, and Jay Jayaraman

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2013 by Michael Watson, Sara Lewis, Peter Cacioppi, and Jay Jayaraman
Publishing as FT Press
Upper Saddle River, New Jersey 07458

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Printed in the United States of America

First Printing: August 2012

ISBN-10: 0-13-301737-0
ISBN-13: 978-0-13-301737-3

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Due to the significant impact that supply chain design has on the cost and service provided by a company, it is critical that managers be knowledgeable about how to optimize the flow of products and goods within their supply chain. This book takes a very technical subject and makes it possible for managers and students alike to understand all aspects of network design. The practical approach used in discussing topics throughout the book provides a clear and excellent framework for those seeking to learn more about the topic. The book is a needed and welcome contribution to the profession.

Dr. Mary C. Holcomb, Associate Professor of Logistics, Department of Marketing and Supply Chain Management, College of Business Administration, University of Tennessee

Supply chain management (SCM) is a rapidly growing area of studyand network design is one of the fastest growing areas within SCM. This book would make a great classroom textbook. It is easy to follow with clear examples and useful exercises. It is laid out in progressive layers, with ones understanding of the subject matter building as you go. You can stop midway and be comfortable with the fundamentals, or you can go as deep as desired into Supply Chain Network Design.

I have been a long-time practitioner of network modeling, as a manager in business and as a consultant, and I have covered the topic in university lectures; I still learned a great deal about a subject I thought I knew thoroughly!

Bill Nickle, Principal, Nickle Consulting

This is a wonderful book that offers students and practitioners the opportunity to learn how to use quantitative techniques to design a supply chain from experts in the field. Along with covering how to model various issues in supply chain design (multiple echelons, service levels, and so on), the authors draw on their extensive expertise as practitioners to provide valuable insights into how to successfully execute a network design study.

Dr. Mike Hewitt, Assistant Professor, Industrial and Systems Engineering, Kate Gleason College of Engineering, Rochester Institute of Technology

Supply Chain Network Design will help students, academics, and practitioners alike understand the importance of successfully designing and optimizing a global supply chain network, while also explaining in easy to understand steps how to make it happen.

John A. Caltagirone, Lecturer and Executive Instructor of Global Supply Chain Management, Quinlan School of Business, Loyola University

This is the first book I have seen that starts with the basics of facility location, and then takes a step-by-step approach to adding real-life complexities to the modeling effort. It appropriately emphasizes the complexities and nuances of designing a supply chain network without getting bogged down in too much math.

Dr. Keely L. Croxton, Associate Professor of Logistics, Department of Marketing and Logistics, Fisher College of Business, Ohio State University

The book is well-positioned to answer many of the what happens in the real world questions my students often ask. The material bridges the gap between classroom models and data or implementation realities. The exercises provided in the book challenge students to analyze their modeling assumptions and consider the implications of these assumptions. The case studies provide a great level of practical relevance for students. This book is a valuable guide for both engineers and supply chain practitioners.

Karen Smilowitz, Associate Professor, Department of Industrial Engineering and Management Sciences, Northwestern University

To my wife and kids for their support while I was writing this book.
MSW

To my parents and siblings for their encouragement and pride in all that I do. And to my coauthors of this book, all the lessons, debates, and work we have done together will benefit me for many years to come.
SEL

To David and Edith Simchi-Levi, who had the vision (and the aplomb) to allow me to work with networks (and businesses) in the real world.
PJC

To my family for their motivation and support through this exciting journey.
JJ

This book was made possible through our work with the network design application LogicNet Plus XE, which was created by LogicTools and acquired by ILOG before it became part of IBM in 2009. The authors of this book have been associated with this product in some way since 1997.

Throughout this time, we have had the opportunity to work with an extraordinary team of colleagues and customers who have given us invaluable insight into the practice and theory of supply chain network design. This book would not have been possible without this experience.

While we cannot thank everyone we worked with, we would like to take the time to acknowledge some of our colleagues.

First and foremost, thanks to Derek Nelson for all his modeling and design expertise throughout the years. And a special thanks to David and Edith Simchi-Levi for founding and nurturing LogicTools, which ultimately made all of this possible. We learned a lot from both David and Edith.

Our extremely talented modeling team has not only helped to enable our customers, but also given us great insight into network modeling across all industries around the globe. The leaders of this team include Ganesh Ramakrishna, Remzi Ural, Alex Scott, Amit Talati, Guru Pundoor, Sumeet Mahajan, Nikhil Thaker, Ritesh Joshi, Javid Alimohideen, Shalabh Prasad, Ronan ODonovan, and Dan Vanden Brink. Others on this team who have contributed in past years include Sharan Singanamala, Derrek Smith, Ali Sankur, Orkan Akcan, Louis Bourassa, Shaishav Dharia, Bhanu Gummala, Kristin Gallagher, Aziz Ihsanoglu, Giray Ocalgiray, Marcus Olsen, Ram Palaniappan, Chuin Kuo, Sanjay Sri Balusu, and Steven Lyons.