supply network design
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A supply network perspective means setting
an operation in the context of all the otheroperations with which it interacts, some of whichare its suppliers and its customers.
Materials, parts, other information, ideas andsometimes people all flow through the networkof customersupplier relationships formed by all
these operations.
Supplier Side
Demand Side
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It helps an understanding of competitiveness.
I
t helps focus on long-term issues.
It helps identify significant links in the network.(Downstream and Upstream parts of the network)
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1. Network Configuration
2. Location
3. Long term capacity management
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Disintermediation
Co-opetition
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Vertical Integration can be defined in terms ofthree factors:
1. The direction of vertical integration.
2. The extent of vertical integration.
3. The balance among stages.
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Reasons for Location decision
o Changes in Demand
o Changes in Supply
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1. The spatially variable costs of the operation
2. The service the operation is able to provide toits customers
3. The revenue potential of the operation
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1. Weighted Score Method
2. Centre of Gravity Method
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The Optimum Capacity Level
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