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New network design software
IBM Logic Net Plus
As part of its supply chain optimisation activities, ifp consulting has introduced a new, innovative software tool from IBM to optimise complex production and dispatch networks.
IBM Logic Net Plus is a powerful software tool for strategic network planning of procurement, production and distribution networks. It was developed by LogicTools, a company founded by MIT Professor David Simchi-Levi. In 2007, LogicTools was bought by ILOG, a French company whose products included the CPLEX mathematical optimiser, which now forms the technical basis of LogicNet optimisation. ILOG itself was in 2009 to IBM.
LogicNet can solve what is known as the “capacitated facility location problem” (cFLP). This involves selecting from a predefined number of possible supply sites (distribution centres, production factories or suppliers) for a quantity of specified customer sites (sinks) those sites where the overall network costs are lowest. Cost factors are fixed and variable operating costs of the supply sites, costs of the opening or closing of sites and transport costs involved in all connections.
Optimisation of networks:
Rationalisation of global sales and production networks to determine the most cost-effective supply-chain network
Determination of dispatch and storage costs and service-level requirements to optimise product delivery
Determination of the optimum number of storage levels in the entire goods network
Determination of the optimum geographical position of production facilities or distribution centres worldwide
Simulation of decentralised or centralised warehouse structures and evidence of the cost benefits of the optimum structure
Determination and visualisation of overall network costs in both distribution and production networks
Analysis of precautionary measures for unexpected events in the supply chain by simulating exact effects on costs, service levels, turnover and profits
Carrying out of "What if" scenarios, for example on the start-up or discontinuation of warehouses and manufacturing facilities in the production network
Planning of transport and tax-favourable supply chains. Simulation of alternative networks to reduce tax burdens and cost savings by various transport routes and means