Logistic: Manufacturing and Logistics Network

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1. Why is it important for a firm to periodically review its logistics network design? How do a firm’s requirements for its logistics network change over time? 為何公司週期性地檢視物流網路設計是重要的?公司該如何要求物流網路隨著時間改變?

The factors that affect the performance of the logistics network are not static, i.e., they change over time. These factors include demand, product design, various costs in the logistics network, regulations, contracts, etc. The effects of these dynamics need to be evaluated periodically in order to determine whether the existing configuration is still satisfactory given the new operating environment. For instance, service level requirements may change due to increased competition which typically means that the lead time to fulfill customer orders needs to be shortened. This may require the firm to redesign its logistic network and build new warehouses that are closer to the end customers.

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2. Within the organization, who is involved in a network design project (operations, sales, marketing executives, etc.)? How? 在組織中,誰需要參與網路設計專案(作業程序、銷售、行銷管理等)?如何參與?

The design of the logistics network is a strategic decision that has long lasting effects and impacts all functions within the company. For the success of such a project, many levels of the organization must be involved: 1. Upper Management: The new design must be aligned with the vision and strategic goals of the company. Additionally, such a project may be costly, so management buy-in is essential to ensure that sufficient resources are devoted to the project. 2. Sales and Marketing: Demand forecasts and anticipated changes in product design and offerings affect the network and need the involvement of sales and marketing teams. 3. Manufacturing and Operations: The logistics network design has obvious impact on day-to-day operation of the firm. In order for the implementation to succeed, it is essential that the people involved with operating the system on a daily basis are involved in its design.

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3. KLF Electronics is an American manufacturer of electronic equipment. The company has a single manufacturing facility in San Jose, California. KLF Electronics distributes its products through five regional warehouses located in Atlanta, Boston, Chicago, Dallas, and Los Angeles. In the current distribution system, the United States is partitioned into five major markets, each of which is served by a single regional warehouse. Customers, typically retail outlets, receive items directly from the regional warehouse in their market area. That is, in the current distribution system, each customer is assigned to a single market and receives deliveries from one regional warehouse. The warehouses receive items from the manufacturing facility. Typically, it takes about two weeks to satisfy an order placed by any of the regional warehouses. In recent years, KLF has seen a significant increase in competition and huge pressure from their customers to improve service level and reduce costs. To improve service level and reduce costs, KLF would like to consider an alternative distribution strategy in which the five regional warehouses are replaced with a single, central warehouse that will be in charge of all customer orders. Describe how you would design a new logistics network consisting of only a single warehouse. Provide an outline of such an analysis: What are the main steps? Specifically, what data would you need? What are the advantages and disadvantages of the newly suggested distribution strategy relative to the existing distribution strategy? KLF電子公司是美國電子設備製造商。該公司在加州聖荷西有單一製造設施。KLF電子在亞特蘭大、波士頓、芝加哥、達拉斯和舊金山等五個區域的倉庫提供其產品。在現行的配銷系統中,美國分隔出五個主要市場,每一個倉庫皆為單一區域性服務據點。通常零售店會接受在市場區域內的倉庫送來的貨源。也就是在目前的系統中,每位顧客被分派到單一的市場並且接收從區域性倉庫來的貨品。不論從任何區域的倉庫,通常需要2 週時間才能拿到訂貨。 最近幾年,KLF看到競爭者顯著增加以及從顧客來的巨大壓力,想改進服務水準和降低成本。為了改善服務水準和降低成本,KLF希望考慮一個新的替代配銷策略,在原本五個區域性的倉庫,將以單一、集中倉庫負責所有的顧客訂單。...
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