Network design - Network Design Key Components (lecture) - Factors influencing Distribution Network Design
4 important questions on Network design - Network Design Key Components (lecture) - Factors influencing Distribution Network Design
What decisons (4) do you have to make regarding distribution network design?
- Facility location: where should facilities be located?
- Capacity allocation: how much capacity at each facility?
- Market and supply allocation: what markets? Which supply sources? What customers?
Which factors influence customer service by network structure?
-Product variety: HP: assembling different type of components to different endproducts. Interesting is crossdocking in warehouses to increase product variety. The role of distribution centre very important.
-Product availability
-Customer experience
- Time to market- Order visibility
-Returnability: convenience of customer to send back product
Which main trade-offs have to be made bij distribution network design decisions?
- Inventory costs VS number of facilities
- Transportation cost VS number of facilities
- Facility costs VS number of facilities
- Response time VS number of facilities
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Describe differences between horizontal an vertical distribution network structure.
Vertical: no. of levels in the distribution chain
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