The goal of a network/capacity planning analysis is to establish the least cost and most efficient supply chain possible.
Key benefits include the ability to:
- Increase productivity and profitability
- Reduce capital requirements
- Reduce fixed and variable costs
- Increase capital utilization
- Improve carrier utilization and performance
- Optimize management of operations
Questions answered:
- Which suppliers should supply materials?
- Where should manufacturing be located?
- Where should goods be made (at what facilities and on which production lines)?
- Can processes be uncoupled (packaging and VAS)?
- Where should inventory be stored?
- How should facilities be missioned?
- How should products be distributed?
- What transportation modes should be employed?
- How should returns be handled?
- How do customer service levels impact the supply chain?