Supply chain facilities are manufacturing, storage and transportation-related facities. We may need to think of adding information processing facilities also to them to have a wider view of the facilites used in supply chains. Location of these facilities, capacity of these facilities, capacity allocated to them in an period and role given to them etc. are facility related supply chain decisions. Facility decisions are referred to as supply chain network decision decisions.
Decision regarding role become important in providing flexibility. If facilities can serve demand in a region globally there is more flexibility. Similarly in a multi-product firm, if facilities can produce large number of products, there is flexibility.
Factors Influencing Facility Decisions
Strategic Focus of the Company
Technological Factors
Economic Incentives
Political Factors
Infrastructure
Competition
A Framework for Network Design Decisions
Phase I Developing Supply Chain Strategy
Phase II. Regional Level Decisions
Phase III. Selecting Desirable Sites in Each Region
Phase IV. Choice of Location
Models for Facility Location and Capacity Allocation
Gravity Location Models
Network Optimization Modesl
Uncertainty and Network Design
Updated 21.2.2012
Results found at > Home > Supply Chain Management > Facility Decisions: Network Design in the Supply Chain - Review Notes
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