There are six distinct supply chain network models, as given below. The distribution system decision is made on the basis of the choice of the customers. The case studies below are just a few examples of achievements from Establish supply chain consultants together with clients. Supply chain design should be focused around customer demands in order for the supply chains to be most effective. 3. To design an effective network, a manager must consider all the factors described in Section 5.2 and those discussed in Chapter 4. A supply chain is created to add value to a given item/material or group of materials to create a finished good that the customer will eventually purchase. Traffic network design − With the growing population, the traffic in cities is increasing. Use optimization for facility location and capacity allocation decisions. In this type, the inventory is stored at the warehouse owned by the manufacturer or producer but the customers place their orders online or through phone and then come to pick up points allotted for collecting their orders. Supply chain network design is about determining the optimal footprint for a company in terms of number, mission, location and size of distribution centers, manufacturing plants and suppliers. The supply chain network design models include outputs such as the total costs, which are the same as those in real world operations. The retailer is the person who takes the order and initiates the delivery request. The distribution function in a supply chain is an important internal service function for any firm, and has been increasingly recognized as playing a strategic role in achieving competitive advantage. The network design in supply chain determines its physical arrangement, design, structural layout and infrastructure of the supply chain. Few other supply chain initiatives offer the kind of improvement potential that a network effort can bring. For example, if the door delivery option is opted for, there is transport between producer and distributor, distributor and merchant and producer and merchant. The current and future demands of the company are taken into account as well and should be grouped appropriately. This comes into action when the inventory is not owned by the manufacturers at the plants; instead it is owned by the merchants/retailers in intermediate warehouses and package carriers are used for shipment of goods from the intermediate location to the final customer. Now we will discuss each model in brief. Since the budget allotted is usually limited, the major issue is to determine which projects should be constructed to develop the flow inside a traffic network. Two different options are available, i.e., customer pickup or door delivery. One is the best stable network for the agents on the “upstream” end of an industry. Reshoring − This phenomenon has emerged recently because of the rising cost and other circumstances. Here, we will discuss the various strategies to study the uncertainty and scenario modeling. Many major decisions involving the long-term location, capacity, technology and supplier selection have to be made by considering the probable uncertainties present in the market development accompanied by changing economic and legal conditions. This extends from the extraction or creation of raw materials all the way to the point when the product is delivered to stores or directly to consumers . Supply Chain Network Design “Due to the significant impact that supply chain design has on the cost and service provided by a company, it is critical that managers be knowledgeable about how to optimize the flow of products and goods within their supply chain. The supply chain network basically deals with three major entities: Producer, Distributor and Merchant. The goal when designing a supply chain network is to maximize the firm’s profits while satisfying customer needs in terms of demand and responsiveness. This option is also called drop-shipping, with product delivered directly from the manufacturer’s location to the customer’s destination. Supply chain networks present different types of models that help us understand the various optimization methods used for studying the uncertainty and scenario modeling. In addition to the factors discussed above, Global Supply Chain Networks include other factors such as the difference in culture, language and currencies. Supply chain network design is the process of building and modeling a supply chain to better understand the costs and time associated with bringing goods to market with the resources and locations available. Transportation, software compatibility and the cost of fuel or oil are also considered. First the basic model is validated and then depending on the results an alternative design is created or the existed one modified for cutting costs further and increasing profits. Often organisations focus only on their organisation; what they produce or provide and not what the end customer receives. Logistics is the movement of goods, and a logistics network is the sequence of systems and operations that work together to design, produce, and bring a product to market. Types of Supply Chain Networks. Establish has a long track-record within supply chain design. To cut the costs, you need a more systematic engineering approach so that you can plan and design the network efficiently. 2. Designing Supply Chain Network involves determining and defining following Elements: Market Structure Demand Plotting or Estimation Market Segment Procurement Cost Product /Conversion Costs Logistics Costs including Inventory holding costs Over heads Cost of Sales Network Design aims to define: Here the company faces a warehouse location problem. By Tompkins International. Designing the most efficient supply chain network structure requires the network to satisfy the strategic objectives of the company over an extended period of time. The terms network design and supply chain network design (SCND) are often employed as synonyms of strategic supply chain planning (see [5, 21, 33]). For any successful supply chain, the number of facilities and their locations are a critical factor. | AIMS UK, Time Value of Money and Islamic Finance | AIMS UK, Maysir (Gambling) and Games of Chances in Islam | AIMS UK. 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