Supply Chain Network Design

Often times, when trying to optimize a network, we too narrowly focus our attention on simply where to locate distribution centers when there are many more factors that need to be considered. One of these factors to consider is the customer service trade-off. We must ask ourselves if a small incremental increase in customer service is really worth the larger increase in cost associated with servicing those customers? Jeff Karrenbauer, president of Insight, “believes such a tool and related modeling effort should be done in parallel to developing and evolving an company’s supply chain strategy, rather than using such modeling tools to flesh out the optimal network after the strategy has been determined.”

Reference: http://www.scdigest.com/ASSETS/ON_TARGET/12-10-10-2.PHP?CID=6298

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