DISTRIBUTION DESIGN AND GOLOBALIZATION

ASSIGNMENT: 5

ID FULL NAME
70074696 TOQEER NASIR

SUBMITTED TO:

SIR ARSLAN HAIDER

DATE OF SUBMISSION:
28-4-2020

SESSION OF SUBMISSION:
SPRING 2020
Highlight the commonalities and differences between channel network design process and

framework for network design decision? develop a single framework to address the issue of

network design decisions and channel network design process?

The term "network design" is more commonly encountered while looking at the supplier side
(e.g. how to optimize the supply network), with the term supply chain having a broader
meaning. Adding to the typical confusion is the use of the term network to mean a graph with
complex interaction models in place of the term chain.

The construction of the supply chain network design is handled by highly skilled consultants
who collect high quality data, validate the model and propose alternative solutions.

Factors that affect the supply chain network:

 Government Policies of the Country where plants are to be located.

 Political climate
 Local culture, availability of skilled / unskilled human resources, industrial relations
environment, infrastructural support, energy availability etc.
 Taxation policies, Incentives, Subsidies etc across proposed plant location as well as
tax structures in different market locations.
 Technology infrastructure status.

Factors that affect the supply chain framework for network decision:

Supply chain strategy / design:

Based on the organization’s business strategy, analysis of global competition (and its likely
evolution), and internal constraints, managers must determine a high level supply chain
design.

The regional facility configuration:

Prediction should include the demand’s characteristics in demand variability and stability of
customer’s requirement.

A set of potentially desirable sites:

Based on the infrastructure availability and other “soft” factors:

Choose the locations:

We pick those that are more suitable to the organization’s needs and define the capacity of
each one.

Problems:

The network design problem is one of configuring the nodal points on a product flow
network that range from the sources of raw materials to the points of final consumption. It is
to determine the number, size, and location of terminals, ports, plants, warehouses, pool
points, cross docks, or any point in the transportation network where product is stopped
momentarily on its way to the end consumer.

Facility location remains a significant problem in supply chain management. Large-scale

facility location models have been developed that assist in designing complex networks.

Warehouse location is generally viewed as a strategic planning problem where the facility
location is found within a broad geographic area. However, available models used for
aggregate planning don’t locate the specific facility site.

The problem of postponing activities like assembling half-finished goods or packaging them.
A mixed integer programming model is provided and it is demonstrated that the resulting
formulation can be used to solve realistic problem instances with commercially available
mathematical programming software.