SECTION C: CASE STUDY $(45$ MARKS$)$

READ THE CASE STUDY AND ANSWER THE QUESTIONS THAT FOLLOW

Title: Optimizing Supply Chain Efficiency: A Case Study on Factors Affecting Distribution Network Design

In the ever$-$evolving landscape of supply chain management, companies face the challenge of designing distribution networks that align with their strategic goals. This case study explores the factors influencing distribution network design and their impact on supply chain efficiency.

LG$,$ a global manufacturing conglomerate, operates in a highly competitive market. To maintain a competitive edge, the company decided to reevaluate and optimize its distribution network. The goal was to enhance responsiveness, reduce lead times, and minimize costs.

A multidisciplinary approach was adopted, combining quantitative data analysis and qualitative assessments. Interviews with key stakeholders, including logistics managers, supply chain analysts, and IT specialists, provided insights into the current distribution network and its challenges. Additionally, historical performance data and market trends were analyzed.

Customer demand variability and product characteristics were identified as some of the factors that affected their distribution network design. Impact on Supply Chain Performance:

The interplay of these factors was found to significantly impact LG$\text{'}$s supply chain performance. Inconsistencies in meeting customer demands, suboptimal inventory management, and higher$-$than$-$necessary costs were identified as areas for improvement.

QUESTION: FOUR $(20$ MARKS$)$

With reference to the case study above critically discuss the key factors to be considered when designing a distribution network. $(20)$