A well-designed distribution network allows a supply chain to achieve the desired degree of responsiveness at a low cost.

a. What is a distribution network and what are the dimensions along which the performance of a distribution network should be evaluated? (4 marks)

b. What are the measures that should influence the design of a distribution network? (6 marks) c. Describe three (3) distribution networks designs. (15 marks)

Question 3

Maximizing the organization’s profit while satisfying customers need in terms of demand and responsiveness should be the ultimate goal of a supply chain network design. There is a systematic framework for designing this network.

a. List the phases in the framework used for designing a supply chain network design? (4 marks)

b. Explain the objectives of each of the phases of the framework. (16 marks)

c. List five (5) factors that ideally should be taken into consideration when making the design decision for the supply chain network.

Question 4

An assistant manager is reviewing the costs associated with one of the store’s better-selling products. The data available follows. Demand = 400 units/year Order cost = $25/order Holding cost = 50¢/unit/year

a. They currently order a one-year supply. What are the total annual ordering cost and holding cost for this order size? (12 marks)

b. What would be the EOQ and its associated ordering and holding costs? (11 marks)

c. What assumptions are made in calculating the economic order quantity? (2 marks)