Overview

Module 2 highlights the significance of an efficient facilities network in cost reduction across the supply chain. It delves into techniques for creating a logistics network model, considering factors like customer and product aggregation for manageable problem-solving. The module discusses strategies for inventory placement, accounting for demand uncertainty's impact. Since network decisions have lasting effects, sourcing from different plants is crucial, with a focus on capacity planning and expansion decisions within the network. In addition, the module reviews the importance of sharing information among supply chain partners. Finally, we'll discuss key concepts such as the bullwhip effect, methods for coping with the bullwhip, strategies for locating products, and the key supply chain trade-offs.

Module Objectives

In this module, the activities, content, and assignments will guide your learning process to ensure you can:

Analyze how a company can develop a model representing its logistics network and validate it
Review how aggregating customers and products affects the accuracy of the model
Assess the impact of demand uncertainty and variability on inventory positioning
Determine how a company knows whether, when, and where to expand its production capacity
Define the bullwhip effect
Assess the value of information coordination and sharing

Module To-Do List

Here's everything you need to do and remember for this module:

Read and review Designing & Managing the Supply Chain Chapter 3: Network Planning and Chapter 5: The Value of Information
Listen to the Podcast (29:53) and contribute to the Podcast Discussion
Complete the Chapter 3 and Chapter 5 End-of-Chapter Questions in McGraw Hill Connect
Participate in the Live Session and complete the participation assignment, or complete the Make-Up Activity