What is network design in logistics?
Network design is a strategic subject for businesses. It calls for in-depth study to orientate crucial decisions such as: siting, sizing the right number of factories, platforms and warehouses. defining the physical flows between the various links in the supply chain and distribution flows.
What are the steps to design a logistic network?
7 Steps To Design The Logistics Network
- Customize the process.
- Determine the need for change.
- Audit the as-is network.
- Assess network alternatives.
- Plan facilities.
- Finalize the to-be-state.
- Develop the implementation plan.
What are the 4 key processes in logistics?
The entire logistics process consists of managing inventory, fulfilling orders, and shipping packages. Inventory management, warehousing, and order fulfillment all play a key role in optimizing logistics operations.
What are the objectives of designing a logistics network?
The objective is to design or reconfigure a logistics network so as to minimize annual system-wide costs, including harvesting, collection or purchasing costs, facility (storage, handling, and fixed) and inventory holding costs, and transportation costs, subject to a variety of service-level requirements.
What are the 7 R’s of logistics?
The Chartered Institute of Logistics & Transport UK (2019) defines them as: Getting the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.
Why is logistics network important?
Logistics is the key to success with supply chains Supply chains are unique networks between businesses that deal with the production, shipment, warehousing and delivery of products. These networks are very important to businesses as they largely affect sales and profits.
What are the factors one should consider to design a logistics network?
Designing Supply Chain Network involves determining and defining following Elements:
- Market Structure.
- Demand Plotting or Estimation.
- Market Segment.
- Procurement Cost.
- Product /Conversion Costs.
- Logistics Costs including Inventory holding costs.
- Over heads.
- Cost of Sales.
What are the six steps in supply chain network design process?
This model has been used in Muther’s well-known methods for systematic planning of supply chain facilities and material handling systems since the 1960s….These steps include:
- Orient the project.
- Define the variables.
- Analyze the sensitivities.
- Create scenarios.
- Evaluate the alternatives.
- Detail and do.
What are the 3 types of logistics?
Types of Logistics
- Logistics Fields.
- Procurement Logistics: Procuring Raw Materials and Parts.
- Production Logistics: Materials Management, Distribution in Factories, Product Management, Shipping.
- Sales Logistics: Delivery from Warehouse to Wholesalers, Retailers, and Consumers.
What are the 6 key functional areas of logistics management?
6 Functions of Logistics: Roles of Logistics in the Supply Chain
- 6 logistics functions.
- Order processing.
- Inventory management.
- Cargo handling.
What is logistical network analysis?
Logistical network analysis is fundamentally aimed at determining the number of production sites, warehouses, and depots. It is also used to develop scenarios for assigning not only a capacity to each of these sites, but also an optimal geographic location in view of specific network constraints.
What are the 5Ps of logistics management?
The major cause of conflict for logistics and marketing interface is related to 5Ps (product, price, place, promotion and packaging) of marketing. Without the successful link of logistics and marketing, the firm may be unable to provide good customer service, resulting in dissatisfied customer or a lost sale.