Coordinated Location, Distribution, and Inventory Decisions in Supply Chain Network Design
Read this article. The goal is to understand optimum product allocation and distribution locations so products are delivered at the lowest possible cost. As you read Part 2, what are some other problems associated with supply chain allocation and distribution?
Important Problems in Supply Chain Management in the Food Sector
Almost without exception, all well-known industries are redesigning
their distribution networks in a bid to meet global trends and continue
to meet customer demands. Considering the competitive market, key food
industries must work on the optimal supply chain structure. However
there is no doubt that supply chain networks are confronting new
challenges. Hunt et al. summarise these challenges:
- More instances of multi-site manufacturing
- Increasingly cut-throat marketing channels
- The maturation of the world economy
- Heightened demand for local products
- Competitive pressures to provide exceptional customer service
- Quick, reliable delivery
- Commonality of turbulence and volatility in markets
- Time-to-market for new products
Based
on these challenges, in this paper we focus on supply chain costs,
customer service level, and delivery time in food distribution planning.