Network design - Network Design Key Components (lecture) - Framework for Network design decisions
4 important questions on Network design - Network Design Key Components (lecture) - Framework for Network design decisions
Describe phase 1 of designing a network
External factors:
- Competitive strategy, Internal constraints, global competition
Types of strategy based on demand characteristics (predictability) and Supply characteristics (lead time):
1. Short leadtime + predictable --> continuous replenishment (LEAN)
2. Long leadtime + predictable --> Plan and optimize (LEAN)
3. Short leadtime + unpredictable --> Quick response (Agile)
4. Long leadtime + unpredictable --> Decouple through postponement (Leagile)
Describe phase 2 of designing a network
External factors:
- Production technologies
- competitive environment
- aggregate factors and logistics costs
- tariffs and tax incentives
- regional demand
- political, exchange rate, and demand risk
- Logistics infrastructure (and clusters)
Internal factors:
- Product characteristics: weight and volume
- Product value
- Distances
- Load factor and utilization rate
- Operational and technological characteristics of transportation (costs, size and speed)
Describe phase 3 of designing a network
External factors:
- Production methods: skills needs, response time
- Available infrastructure
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
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Describe phase 4 of designing a network
- Factor costs: labor, materials, site specific
- Logistics costs: Transport, inventory, coordination
But also:
- Production technologies
- Tariffs and tax incentives
- Regional demand
- Political, exchange rate, and demand risk
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