Explain Logistic Network Analysis.


Ans.   1.       Network design is prime responsibility of logistical management since a firm’s facilities and structure is used to provide products and materials to the customers.

2.       Logistics facilities typically include manufacturing plants, warehouses, cross-dock operations, and retail stores.

3.       Determining how many of each type of facility are needed, their geographic locations, and the work to be performed at each is an important part of network design.

4.       In certain situations, some. of the facility operations may be outsourced to service specialists. Regardless of who does the actual work, all facilities must be managed as an integral part of a firm’s logistical network.

5.       Network design, not only determines the number and location of all types of facilities required to perform logistics work but also determines what inventory and how much to stock at each facility and where to assign customer orders for shipment.

6.       The network of facilities including information and transportation forms a structure from which logistical operations such as processing of customer orders, maintaining inventory and material handling performed.

The design of network must consider geographical variations. In context of global logistics, issues relating to network design become increasingly more complex.

The factors influencing modification of network design are :

·        Change in demand and supply

·        Product assortment

·        Changes in Supplier’s supplies

·        Manufacturing requirements.

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