HOW DOES RISK POOLINGIMPACTMANUFACTURING NETWORK CONFIGURATION?

A firm’s choice between setting up a plant network is influenced by a number of factorsincluding demand fluctuations across its portfolio of products, logistics costs and service levelrequirements. Generally speaking product plant networks offer the benefits of consolidatedproduction and reduced transshipment costs as the product is manufactured complete under oneroof and shipped to the market. On the other hand, process plant networks allow intensivededication to process expertise and economies of scale. In this paper we show that besides thesebenefits, process plant networks offer significant risk pooling advantages under a wide range ofconditions.[...]

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Year of publication:	2003-03-07
Authors:	Kulkarni, Shailesh S. ; Magazine, Michael Jay ; Raturi, Amitabh S.
Institutions:	College of Business Administration <Cincinnati, Ohio>
Subject:	Netzwerk \| Risikoverteilung \| Fertigungsprozeß \| Konfiguration <Informatik> \| configuration

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1. Introduction
2. The Manufacturing Network Configuration Problem: Literature Review and Synthesis
3. Risk Pooling Benefit of Process Plant Networks: A Simple Demonstration
4. A Two-stage Optimization Model for the Network Configuration Problem
4.1 Two-stage Model for a Process Plant Network
4.2 Two -stage Model for a Product Plant network
4.3 Comparing the Performance of Product and Process Plant Networks
5. Numerical Examples with Uniform Demand Distribution
5.1 Results for a Two-stage Model for a Process Plant Network with Uniform Demand
5.2 Network Configuration Choice with Uniform demand
6. Conclusions and Future Research
Appendix
References

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