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Supply Chain Network Design (SCND)

I could say that the supply chain design is now upside down. The environment has changed. Transportation cost is going to create an even more distributed sourcing network than we would have had otherwise (Keith Harrison, Head of Global Supply at P&G, 2008).

Information about Supply Chain Network Design (SCND)

The process of SCND is also known as 'strategic supply chain planning' (Chopra et al., 2007). SCND spans all movements and storage of raw materials, work-in-process inventory and finished goods from the point-of-origin to the point-of-consumption and includes planning, implementing and efficiently controlling supply chain operations (Simchi-Levi, 2004). Planning processes in SCND also aim at finding the best possible supply chain configuration so that all operations can be performed in an efficient way. Three planning levels are distinguished depending on the time horizon: strategic, tactical and operational (Bender et al., 2002). Although, typically no location decisions are made on the tactical or even operational level, a number of issues are strongly related such as inventory control policies, the choice of transportation modes and capacities, warehouse layout and management, and vehicle routing.

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