Logistic: Manufacturing and Logistics Network

The network design process is used to formulate decisions concerning various aspects of logistics networks (Croxton & Zinn, 2005). Efficient logistics networks are essential for transporting people and goods in the 21st century. In this regard, Katsioloudis (2009) advises that, "Transportation networks facilitate the movements of goods and people to markets and are essential for the prosperity of a society and the competitiveness of an economy" (p. 7). Designing a logistics network in general is a major component of successful material handling. For instance, according to Cheong, Bhatnagar and Graves (2007), "Designing a logistics network that maximizes the utilization of the transport and warehouse capacity in

Customer demand and product preference should be focused on to produce more of what the customer wants and to allow for stock reduction.

It is widely known that logistics is the life blood of anything major. The logistics and transportation industry in the United

5. Proposed location of the new warehouse and transportation distances from the new location to each retail outlet/customer

In order for a supply chain to run as efficiently as possible, considerations must be in place to ensure the logistics function is operating in an appropriate manner. Part of this is ensuring that the distribution centre is located in an area that allows the greatest efficiency, all the while still meeting operational and strategic needs (Van Thai & Grewal, 2005, p. 4)

The goal of any company is to consider the correct location for the distribution center to all for the flow of incoming material to the DC, good flow through the DC, while maintaining good inventory control, excellent customer service, while maintaining a balance between servicing both the internal and external customers and the cost of providing those services. Utilizing the information described and logistics simulation processes this can be achieved. The correct balance between service and cost is important for the ultimate survival and growth of any

1.Detail and discuss alt the challenges you faced in projecting demand: meeting customer needs and wants, pricing, competitive actions and competitive response. How did your decisions impact your end performance (market share, income statement)?

There are various steps that will be involved for designing a new logistics activity. In the first step, the currently operating network in the organization should be analyzed. In the second step, the network optimization database should be designed and populated. After this in the third step, the alternatives for network design should be created. In the fourth step, the network optimization model should be adopted. In the fifth step, the tool for network optimization should be selected. In the sixth step, the network optimization should be implemented. In the seventh step, the alternative network designs will be evaluated. In the last and the final step, the

(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.

Since logistics is one of the non-core activities, the present logistics system needs to be analyzed to determine the most efficient and effective strategy that will be aligned with the companies objectives.

Public warehouses are very useful to the business community. Most of the business enterprises cannot afford to maintain their own warehouses due to huge capital Investment. In many cases the storage facilities required by a business enterprise do not warrant the maintenance of a private warehouse. Such enterprises can meet their storage needs easily and economically by making use of the public warehouses, without heavy investment.

The problem of facility location is faced by both new and existing businesses, andthis is critical to a company’s success. An important element in designing a company’ssupply chain is the location of its facilities. Manufacturing and service companies’location decisions are guided by a variety of criteria defined by competitive

When planning to utilize this centralized warehouse/complex, several things have to be taken into account fixed costs, storage costs and handling cost are all important factors in this process. Handling costs coincide with the utility and labor cost proportional to the warehouse’s yearly flow of goods and/or services. Fixed costs are not proportional to the quantity of material that passes through the facility: it has to do with capacity of the facility. Storage costs are calculated from the inventory of products held in that facility.

Design for logistics is a series of concepts in the field of supply chain management involving product and design approaches that help to control logistics costs and increase customer service levels. The concepts include the three key components, Economic packaging and transportation, Concurrent and parallel processing, and Standardization.

The variability of logistics performance is quite relevant. ALP has not been able to guarantee a reliable service to its customers in the last years. There seems to be a lack of organization when providing the service to the customers, in the sense of establishing priorities and