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Monday, March 21, 2016

the 3 golden rules of optimizing network design process:


1)The decision to allocate volumes and markets to plants is an important decision in the overall tactical decision system for the firm. The decision to locate these plants in locations where it has decided to is an important network design decision, which has significant implication on the supply chain performance

1)Firms can use linear programming model to decide an optimal network design and operations Deciding optimal location of services in a model a) where consumers need to walk in everyday involves different considerations as opposed to a model b) where “ its corporate employees are located at one point and with c) where its manufacturing locations are located across the country

2)Network design involves large amount of data , converting large amount of data into meaningful structured data into insights

3)Global firms spreads out their risks by having their manufacturing plant as dispersed across geographically possible and keep their excess capacity in network as a hedge against uncertainty in markets and prices of finished products and raw material

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