13. logistical coord & network design
Logistical coordination involves smooth flow of information, inventory, and realization through coordination of logistical plans that consider strategic customer service objectives and constraints. Network analysis studies locations and links between facilities to minimize costs and maximize customer service. Key decisions in network design include the number and locations of facilities, activities performed, size, and factors like storage type and order picking versus replenishment activities. The number, location, and operator of facilities influence costs and customer service by impacting transshipment, response times, and communication between locations. Models for facility location include gravity, analytical, and ton-mile center models.
![Some salient features of network design (What decisions are taken in network design?) Number of facilities [factories and warehouses] Their locations Communication systems Activities performed in these facilities, what item (SKU)? Storage? Break bulk? Type of the facility (Who should operate these facilities?) Size of the facility, how big?](https://image.slidesharecdn.com/13-logisticalcoordnetworkdesign-110707064616-phpapp01/85/13-logistical-coord-network-design-3-320.jpg)
13. logistical coord & network design
- 1. Logistical Coordination Ensuring a well planned, smooth, uninterrupted and quick flow of materials in the value chain How is this done? Smooth flow of information Smooth flow of inventory Realization is the result Coordination takes place when logistical plans take into account Strategic customer service objectives Constraints to meet the above
- 2. Net work Analysis (or Location Analysis) What is a network? Location of facilities and routes or links What is network analysis? Study of the locations & links for minimizing logistical costs and or maximizing customer service
- 3. Some salient features of network design (What decisions are taken in network design?) Number of facilities [factories and warehouses] Their locations Communication systems Activities performed in these facilities, what item (SKU)? Storage? Break bulk? Type of the facility (Who should operate these facilities?) Size of the facility, how big?
- 4. Factors to be considered in deciding the size Fixed as against random access storage Horizontal versus high rise layout Order picking (large inventory) versus stock replenishment (small inventory) activities Multi-dock versus single dock layout Aisle space? Rack space? Labor intensive or high tech operations, carousals? Robotics? Amount of cross docking
- 5. Number of facilities, How many?
- 6. Importance of network analysis & design Logistical network has to respond to market dynamics promptly What are market dynamics? Changing customer service requirements, shorter lead times? Lower costs? Shrinking supplier base Changing customers Shifting locations of customer Changing locations of supply market Change in corporate policies (dropping of products or product variety)
- 7. 2. Logistical Network influences cost of moving the product to the customer due to its following features Network option Amount of transshipment No of locations Volume of inventory (the square root law) Who operates these facilities? - outsourcing decisions Communication between these facilities, information and inventory
- 8. 3. L/N influences the Customer service Response time Lead-time Response to competitive action 5. L/N has to accommodate corporate organizational changes such as down sizing and reengineering & globalization
- 9. Some models for facility location Gravity model Analytical models Ton-mile center