Supply Network Design

Supply network design involves strategic decisions which define the boundaries of the following tactical and operational decisions. Therefore, close attention should be paid at this level of supply chain planning. Today, customer demographics and market dynamics are changing faster than ever which requires organizations to revisit their supply network designs more frequently.

Supply network decisions make the trade-off between inventory, transportation, manufacturing, procurement and operational costs to achieve the strategic goals of the organization by choosing:

  • Location and capacity of production facilities
  • Location, capacity and attributes of storage facilities
  • Assignment of customer locations to warehouses
  • Transportation modes between each node of the supply chain
  • Information flow in the supply network

Our Solution

We build a tailored mathematical model, as comprehensive as possible, to capture all significant components of your business. Typical inputs we require are:

  • Demand projections and product allocations at customer locations
  • Existing and candidate locations for production and storage
  • Fixed and variable costs of each existing and candidate facility
  • Cost of transportation under different modes
  • Inventory holding costs
  • Target customer service levels

Since some of these inputs are not deterministic for long-term planning, we run multiple scenarios to reach a robust network with minimal risk under varying conditions.

Please contact us for a tailored solution for your business