TLMT341 Assignment#1 - Logistics Network Design.docx

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Running head: LOGISTICS NETWORK DESIGN 1 Logistics Network Design American Military University TLMT341 D001 Win 2018 Professor Irvin Varkonyi
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LOGISTICS NETWORK DESIGN 2 Logistics Network Design Designing a successful logistics network is of the utmost importance for any logistics business. This is especially the case now, where customers are becoming increasingly impatient. Logistics managers need to be able to design and redesign distribution networks quickly and also more frequently so that they can consistently operate at the lowest costs while providing the best customer service (MH&L Staff, 2012). In the 1990’s logistics networks used to need to be reviewed and possibly restructured every 5 to 10 years, but due to current issues affecting network configuration, the networks now need to be reviewed and updated on a much more frequent basis, possibly even daily (Frazelle, 2012). Some of the many issues that are consistently presenting new challenges to logistics networks are shifting labor rates, new carriers and products, supplier and customer locations, new trade agreements, security requirements, and fuel costs (Frazelle, 2012). While designing a logistics network, especially one with only one warehouse, there needs to be a large portion of the design portion dedicated to customer service. During this phase, there are many questions that the logistics managers need to answer in regards to their customers: Does the warehouse need to be close to the customers? Will they lose sales if a competitor provides better service? Will they increase sales if they improve service? Do they
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