Page 288 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Unit 13: Logistics Design and Operational Planning

firms often face questions such as: (1) How many distribution warehouses should be used and Notes
where should they be located? (2) What are the inventory/service trade-offs for each warehouse?
(3) What types of transportation equipment should be used and how should vehicles be routed?
and (4) Is investment in a new materials handling technology justified?
Such questions are usually characterized as complex and data-intensive. The complexity is due
to the large number of factors influencing logistics total cost and the range of alternative solutions.

Did u know? The data-intensiveness is due to the large amount of information required to
evaluate logistics alternatives.
Typical information analyses must include possible service alternatives, cost characteristics, and
operating technologies. These analyses require a structured process and effective analytical tools.
Just as no ideal logistical system is suitable for all enterprises, the method for identifying and
evaluating alternative logistics strategies can vary extensively. However, there is a general
process applicable to most logistics design and analysis situations.

Figure 13.1: Research Process

Feasibility
Assessment

Phase I

Project
Planning

Assumptions and
Data Collection

Phase II

Analysis

Development of
Recommendation

Phase III

Implementations

Source: Donald J. Bowersox, David J. Closs, M. Bixby Cooper, “Supply Chain Logistics Management,”
Michigan State University

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