Card Set Information
Distribution Network Planning
What are the 4 benefits of a bill of distribution (BOD)?
1. Provides planners with visibility to supply/demand relationships in the dist channel.
2. Clearly establishes the r'ship btw stockrooms at different levels eg. 2A, 2Y, 3A etc
3. Redefines the resupply path per sku per stockroom
4. Allows DRP to replenish stock in all stockrooms
How do channels of distribution differ?
Differs in terms of market exposure (distribution density) a manufacturer needs in order to meet sales objectives.
Complex - max distribution points to attain exposure to customers
Selective - exclusive product distribution
Exclusive - even more selective
Internal/Direct - ETO
Name 3 types of channel dependency and examples.
1. Single transaction - short lived. Eg. tractor, motorbike.
2. Conventional - No lasting commitment. Eg. Clothes, CDs.
3. Networked Supply - commitment to SC efficiency. Eg. Newpaper, bread, milk
Influences on Network Configuration.
1. Customer service objectives - LT/availability
2. Distribution Intensity - product exposure
3. Channel dependency
4. Transaction complexity
5. Logistics strategy - FTL, LTL
Safety Stock increases as the number of DCs increases. Why?
Demand is more volatile at extremities of a network so forecasts are less accurate.
To maintain a high service level, safety stock needs to be higher.