logistics network design
loh-JIS-tiks NET-werk deh-ZYN
ləˈdʒɪstɪks ˈnɛtwɜːrk dɪˈzaɪnListen
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the strategic planning process of determining the optimal configuration of a supply chain's physical infrastructure, including the number, location, and capacity of manufacturing facilities, warehouses, distribution centres, and cross-docking terminals, as well as the transportation links between them, to minimise total cost while meeting customer service requirements; logistics network design involves facility location modelling, demand mapping, transportation mode selection, inventory deployment decisions, and scenario analysis to evaluate alternative configurations; it is a major capital investment decision typically reviewed every three to five years or following significant changes in demand patterns, cost structures, or strategic priorities
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