What is network planning in logistics?
Logistics network planning refers to the class of tools required to analyze the trade-offs among inventory quantities, number and location of warehouses, and transportation costs to most profitably support a desired level of customer service.
What do you consider in the planning and design of a logistics network?
The design of a logistics system is based on four major planning areas: customer service levels, location decisions, inventory planning and transportation management.
What are the six major steps that are recommended for a logistics network design process?
Network planners can avoid such problems by following a standardized, step-by-step planning process that is explicit, well documented, and visual….These steps include:
- Orient the project.
- Define the variables.
- Analyze the sensitivities.
- Create scenarios.
- Evaluate the alternatives.
- Detail and do.
What are the steps in the process of logistics supply chain network design?
Designing Supply Chain Network: A Proven Process
- 1) Clearly define your objectives.
- 2) Gather supporting data.
- 3) Model your supply chain network.
- 4) Analyze your supply chain network.
- 5) Implement and refine.
- [Suggested Reading: Unlocking supply chain profits with total delivered cost]
What is logistics process design?
Design for logistics is the design of products for manufacturing, packaging, shipping, warehousing, merchandising and repackaging for returns. It commonly includes goals such as scale, cost efficiency, environmental impact, security and marketing.
What are the steps in logistics?
There are five elements of logistics:
- Storage, warehousing and materials handling.
- Packaging and unitisation.
- Inventory.
- Transport.
- Information and control.
What are the different steps involved of planning of network?
The network planning process involves three main steps: Topological design: This stage involves determining where to place the components and how to connect them. Network-synthesis: This stage involves determining the size of the components used, subject to performance criteria such as the Grade of Service (GOS).
What is supply chain network planning?
Supply chain network planning involves the evaluation of complex tradeoffs among various supply chain components such as suppliers and their capacities, purchasing costs, transportation costs, manufacturing capabilities at different facilities and overall demand satisfaction in a global network – while taking long-term …
What is network design in supply chain?
Supply Chain Network Design (SNDC) also known as ‘strategic supply chain planning’ is the process for building and modelling the supply chain to understand the costs and time to bring goods and services to market within an organisations available resources.
What does network logistics planning and design mean?
Network Logistics planning and design involves building transport, inventory and location strategies around your customer service goals, ensuring the total package achieves the best service at the lowest cost.
What’s the first step in designing a network?
In this first step, a network design team will start by laying out the objectives and the high-level scope of the project, with the end already in mind. Since these are large, capital-intensive projects, the team should use a formal project manager and project processes.
Why is network planning important in supply chain?
Dependent upon a strategic planning process, the logistics network within supply chains relies heavily upon businesses taking a holistic perspective at the heart of planning their supply chain processes.
Why do we need a perfect logistics network?
However, now logistics professionals are using modeling to plan and optimize networks to maximize profit, speed to customer, sustainability, and/or other strategic goals. Minimizing is no longer sufficient The secret sauce is designing the perfect network to optimize profitable growth.