CHAPTER 12: Network Design
Network design overview
• Enterprise facility network
• Warehouse requirements
• Systems concept and analysis
• Total cost integration
• Formulating logistical strategy
Enterprise facility network
• Availability of economical transportation provides opportunity for facility networks
• Design requirements are from integrated procurement, manufacturing and customer accommodation strategies
– Logistics requirements are satisfied by achieving total cost and service trade-offs
Spectrum of location decisions exists but chapter focus is on selecting warehouse locations
• Transportation services link locations into an integrated logistical system
• Selection of individual locations represents competitive and cost-related logistical decisions
– Manufacturing plant locations may require several years to fully deploy
– Warehouses can be arranged to use only during specified times
– Retail locations are influenced by marketing and competitive conditions