Ch10 Logistics and SCMB - Network Design and Facility...

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Click to edit Master subtitle style Copyright © 2009 all rights reserved Dr. Chafik Abid – www0.umoncton.ca/abidc/e – [email protected] Network Design and Facility Location Chafik Abid Ph.D., M.B.A. 11
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Content Designing the Distribution Network in a SC Network Design in the SC Measuring Supply-Chain Performance
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33 The Role of Distribution in the SC Distribution : the steps taken to move and store a product from the supplier stage to the customer stage in a supply chain Distribution directly affects cost and the customer experience and therefore drives profitability Choice of distribution network can achieve supply chain objectives from low cost to high responsiveness Examples: Wal-Mart, Dell, Proctor & Gamble,
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44 Factors Influencing Distribution network performance evaluated along two dimensions at the highest level: Customer needs that are met Cost of meeting customer needs Distribution network design options must therefore be compared according to their impact on customer service and the cost to provide this level of service
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55 Factors Influencing Distribution Network Elements of customer service influenced by network structure: Response time Product variety Product availability Customer experience Order visibility Returnability Supply chain costs affected by network structure: Inventories
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66 Service and Number of Facilities Number of Facilities Response Time
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77 The Cost-Response Time
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