Introduction To Supply Chain and Network Design
Introduction To Supply Chain and Network Design
Introduction To Supply Chain and Network Design
by Faisal Jamadar
Key Considerations in Supply Chain Network
Design
Demand Forecasting Facility Locations Supplier Relationships
Accurately predicting future demand Strategically placing manufacturing, Building strong partnerships with
is crucial for capacity planning and warehousing, and distribution centers reliable suppliers to ensure a steady
inventory optimization. to minimize transportation costs and flow of materials and components.
lead times.
Demand Forecasting and Planning
1 Data Collection
Gather historical sales data, market trends, and customer behavior to develop
accurate demand forecasts.
2 Statistical Modeling
Apply advanced forecasting techniques like time series analysis, regression
models, and machine learning to predict future demand.
3 Demand Shaping
Proactively influence demand through marketing, pricing, and product strategies
to align with supply capabilities.
Facility Location and
Capacity Optimization
1 Geographic Factors
Consider factors like transportation infrastructure, labor availability, and
proximity to suppliers and customers.
2 Economies of Scale
Optimize facility sizes to maximize production efficiency and minimize
unit costs.
Inventory Visibility
Implement real-time inventory tracking and monitoring systems to improve decision-making
and reduce excess stock.
Demand-Driven Replenishment
Align inventory levels and replenishment strategies with actual customer demand to
minimize waste and obsolescence.
Transportation and Logistics
Network Design
Mode Selection
Evaluate transportation modes (e.g., truck, rail, air, ocean) based on cost,
speed, and reliability.
Route Optimization
Develop efficient transportation routes and schedules to minimize
delivery times and fuel consumption.
Carrier Partnerships
Collaborate with logistics providers to leverage their expertise and
optimize the transportation network.
Sustainability and Environmental Impact in
Supply Chains