Increasing customerexpectations, rising costs and more intense competitive pressures are drivingthe development of the new supply chain strategies and complex network designs.That increasing complexity is one of the main reasons why supply chain networksneed to be frequently re-evaluated. (Pickett2013, pp. 30) . It can likewise altogether enhance edges and lessen workingexpenses. The number and areas of plants and distribution centers is a basicfactor in the accomplishment of any store network.
A few specialists proposethat 80 % of the expenses of the store network are secured with the area of theoffices and the assurance of ideal streams of item between them (Wattsonet al. 2012, pp. 1). Research ObjectivesThetarget of this proposal is to look through outlines and demonstrating hones andto make a system which could distinguish most ideal network arrange structurefor the case organization. The fundamental research question for thisexamination is: How to streamline case organization’s dissemination arrangeregarding client needs and expenses? The fundamental inquiries can be isolatedinto littler sub-inquiries with a specific end goal to discover thearrangement. These sub-questions are:· What is the customers” service level that we are seeking toreach?· What is/are the main kind(s) of distribution network(s) tobe implemented?· What is the best way to measure costs inside suchnetworks? The Main purpose of this study is to solve a company’sdistribution network problem but at the same time target is to define clear andsimple framework for future distribution network studies.
D- LiteratureReview These supply chain management definitions leads to few keyobservations. First, supply chain management takes into consideration everyfacility impact on cost and plays a role in making the product conform tocustomer requirements. Second, the objective of supply chain management is tobe cost efficient and cost effective across the entire system. (Simchi-Levi et al. 2004) Chopra and Meindl (2013, pp.
15) have also defined that the objective of every supply chainshould be to maximize the overall value generated. The value is the differencebetween what the value of the final products is to the customer and the costthe supply chain incurs in filling the customer’s request. This is also knownas supply chain surplus. Supply chain profitability is the difference betweenthe revenue generated from the customer and the overall cost across the supplychain. Outlineof each inventory network relies upon both client’s needs and the parts playedby the phases that are included (Chopra and Meindl 2013, pp. 15).
Hugos (2011) clarifiedthat organizations in any store network must settle on choices independentlyand all things considered with respect to their activities in five territories:1. Generation- What items does the market need? What’s more, what amount of which items oughtto be created and by when? 2. Stock -What stock ought to be loaded at each phase in an inventory network? 3. Location -Where should offices for generation and stock be located? 4. Transportation- How should stock be moved starting with one inventory network area then ontothe next? 5. Data – Howmuch information ought to be gathered and what amount of data should be shared? Store network for practical items conversely should concentrateon operational effectiveness and supply unsurprising interest productively atmost reduced conceivable cost.
Effective store network ought to keep up highnormal creation use rate, produce high stock turns and abbreviate lead time asyearns as it doesn’t build cost. Fisher’s abnormal state item – productionnetwork structure is represented in the table below. Functional Products Innovative Products Efficient Supply Chain Match Mismatch Responsive Supply Chain Mismatch Match Table 1: Supply chainmanagement matrix Lee(2002) extendedFisher’s system by including supply vulnerabilities in his proposed structure.Lee clarified that the supply procedure can be either steady or developing forboth useful and creative items.
In stable supply process the assemblingprocedure and innovation are develop and the supply base is settled.Interestingly, a developing supply process is insecure Stavrlulakiand Davis (2010) haveadded Design-To-Order (DTO), Make-To- Order (MTO), Assembly-To-Order (ATO) andMake-To-Stock (MTO) supply chain steering types for framework which should helpcompanies to select correct supply chain strategy for each product. Frameworkbasically suggests that low cost product with stable demand, short lead timesand high volumes should use efficient production and logistics processes andMake-to-Stock steering model to achieve best results.
The principle objective ina store network arrange configuration venture is to expand the association’sbenefits and in the meantime fulfill client needs as far as request andresponsiveness. All system plan choices influence each other and system outlinechoices have real effect on company’s execution on the grounds that thesechoices decides the production network design and set requirements for otherinventory network drivers that can be utilized either to diminish store networkcost or to build responsiveness. (Chopra and Meindl 2013, pp.
120 – 126) Figure 1: Decision phases in global network design. E- Methodology Distribution networkdesign process/framework will be based on the literature research. Latestarticles and books will be used to understand distribution network designs,supply chain cost and network optimization. Customer servicerequirements will be collected and identified by interviewing company’scustomer service representatives.
Cost estimates for distribution network willalso be collected from several companies. General objective is to produce asolution through options and evaluation of the options. Comparison and analysisof different options should bring more support to the findings than evaluationof a single option. Stochastic programming:The goal of stochastic optimization is to find a solution that will performwell under any possible realization of the random parameters. The objectivefunctions of many of stochastic models are minimization of the expected cost ormaximization of the expected profit of the system (Snyder, 2006). References 1 Bevilacqua, M., Ciarapica, F.E.
, and Giacchetta, G. (2006). A fuzzy-QFD approach to supplier selection,Journal of Purchasing and Supply Management, 12 (1), 14-272 Chopra, S. & Meindl, P.2013. Supply Chain Management – Strategy, Planning and Operations. Fifthedition. Harlow: Pearson Education Limited.
3 Lee, H.L. 2002.
Aligningsupply chain strategies with product uncertainties. California ManagementReview. Vol. 44, No. 3, pp. 105 – 119.
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