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Supply Chain Management (3rd Edition) : Designing The Distribution Network in A Supply Chain
Supply Chain Management (3rd Edition) : Designing The Distribution Network in A Supply Chain
(3rd Edition)
Chapter 4
Designing the Distribution
Network in a Supply Chain
2007 Pearson Education
4-1
Outline
Factors Influencing
Distribution Network Design
Factors Influencing
Distribution Network Design
Response time
Product variety
Product availability
Customer experience
Order visibility
Returnability
Inventories
Transportation
Facilities and handling
Information
Response Time
2007 Pearson Education
Local FG
Mix
Regional FG
Local WIP
Cost
Central FG
Central WIP
Central Raw Material and Custom production
Custom production with raw material at suppliers
Low
Low
2007 Pearson Education
Response Time
Hi
Number of facilities
2007 Pearson Education
Number of facilities
2007 Pearson Education
Number of facilities
2007 Pearson Education
Total Costs
Total Costs
Facilities
Inventory
Transportation
Number of Facilities
2007 Pearson Education
Number of Facilities
2007 Pearson Education
Retailer
Customers
Product Flow
Information Flow
2007 Pearson Education
Retailer
In-Transit Merge by
Carrier
Customers
Product Flow
Information Flow
2007 Pearson Education
Warehouse Storage by
Distributor/Retailer
Customers
Product Flow
Information Flow
2007 Pearson Education
Distributor/Retailer
Warehouse
Customers
Product Flow
Information Flow
2007 Pearson Education
Retailer
Cross Dock DC
Pickup Sites
Customers
Customer Flow
Product Flow
Information Flow
Response Time
Manufacturer
Storage with Direct
Shipping
Manufacturer
Storage with InTransit Merge
Distributor Storage
with Package
Carrier Delivery
Distributor
storage with last
mile delivery
Manufacturer
storage with pickup
Customer Experience
Order Visibility
Returnability
Inventory
Transportation
Information
Product Variety
Product Availability
Manufacturer
Storage with
Direct Shipping
Manufacturer
Storage with InTransit Merge
Distributor Storage
with Package Carrier
Delivery
Distributor storage
with last mile delivery
Manufacturer
storage with
pickup
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