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Network Planning - Essay Example

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Network planning in logistics can be defined as a set of tools that is required so as to perform analysis of the inventory levels, transportation costs and warehouse locations so that these elements are able to support effectively the level of customer service. Network is one of…
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Network Planning
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Download file to see previous pages The network planning model refers to a smooth structured approach that eliminates some of the redundant elements from the system so as to obtain an optimal network. The logistic network for a single warehouse needs to encompass all the essential elements of the logistic activities so that there is smooth flow of products and information along the logistic chain consisting of a single warehouse. The single warehouse would serve as a centralized warehouse for the overall business operations and would comprise of all the necessary facilities that would be required for the effective coordination amongst all the other elements encompassing marketing department to the customers (Radhakrishnan, 2001). The first step that would be essential for the network design would be proper analysis of all the required information of the company’s operations. This information analysis would enable in incorporating the best strategy for the logistic network. Since there would be a single warehouse that needs to be centralized and handle all of the operations starting from inventory keeping to that of semi-finished or finished products it is very much important to decide on the size and location of the warehouse that would be the next step of the logistic network planning. The next step in designing this optimal network would be calculation of the facility and transportation costs. There needs to be a proper estimation on what are the major costs that is associated with the logistic framework that would be required in the network set up comprising of single warehouse (Waters, 2010).The next step for the design of optimal network would be consideration of various facilities such as vendors, manufacturing center, customer service and the distribution center. These facilities need to be given importance as there is continuous flow of finished products and raw materials amongst these facilities ...Download file to see next pagesRead More
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