MANAGING DISTRIBUTION- Distribution System Design
SUMMARY
·
Distribution system design
Desingning a new distribution system or, as is more likely in
practice, evaluating, and planning improvements to anexisting system, requires
sytematic cost-effectiveness analysis and operational planning
·
Some guilding principal include
Managing and evaluation sitribution and logistic as an
integrateed activity
Ensuring customer service needs are understood and
accomodated
Balancing the trade-off bettween cost and service
Keeping stock moving
Minimizing lead times, inventory, & cost
Analysis ways tto improve effectiveness
Minimizing the steps in storage and handling
·
4 Major Elements
System Type : (Geographic coverage, population
coverage, or both; number of levels in the system; push versus pull system;
degree of central)
Information System: (Inventory control, records &
forms, consumption or respons, information flow)
Storage : (Selection of sites, building
design, materials handling system, order picking, layout)
Delivery : (colection versus delivery,
in-house versus third party, dedicated or arrangements, choice of transport,
vehicle procurement, vehicle maintenance,
routing & scheduling of delivers)
·
Channel Issue
A. Intensity of distribution
o
Intensive
distribution
o
Exclusive
distribution
o
Selective
distribution
B. Cooperation, conflict, and competition
B. Cooperation, conflict, and competition
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