The trade-off between transportation and inventory costs is significant when designing a supply chain network. Two fundamental
Question:
The trade-off between transportation and inventory costs is significant when designing a supply chain network. Two fundamental supply chain decisions involving this trade-off are the Choice of Transportation Mode and Inventory aggregation.
Design a complete supply chain network for an FMCG company based in Pakistan. However, suppliers are both local and international but the distribution is confined in Pakistan only. This is a push-based industry and the business model is horizontal. You are required to do the following activities and don’t write anything in detail. Use bullet points to answer.
• The value chain diagram
• Identify the types of inventory at each stage of the value chain
• Modes and Legal forms of transportation at each stage
• Warehouses at each stage, their type, and strategies for warehouse location
You are supposed to present a summary of your supply chain design in a matrix form.
Matching Supply with Demand An Introduction to Operations Management
ISBN: 978-0073525204
3rd edition
Authors: Gerard Cachon, Christian Terwiesch