Supply Chain Network Analysis and Design: Location Analysis

PROC 5820
7 May 2014

Summary

The principal thesis of this paper is to discuss location analysis and its role in supply chain network analysis and design. The emphasis of site location is of strategic importance to all organizations seeking to maximize profits and minimize costs. The logistics/supply chain network design has six major planning steps in the process of designing a comprehensive logistics/supply chain network: The first step is to define the logistics/supply chain design process. The second step is to perform a logistics/supply chain audit. The third step is to examine the logistics/supply chain network alternatives. The fourth step is to conduct a facility location analysis, followed by the fifth step, which is to make decisions regarding network and facility location. The sixth and final step is to develop an implementation plan. Location analysis is also discussed in terms of the advantages and disadvantages of globalization and major location site factors. The discussion then describes the methods for evaluating major location site factors and making location decisions based on the evaluation. The paper concludes with discussing different modeling approaches and the need for comprehensive planning. (Reid and Sanders, 2010) (Coyle, J., Langley, C., Novak, R., Gibson, B. 2013)

Introduction As stated by Jeff Karrenbauer (2010) in his presentation, Strategic Supply Chain Design, to the North America Supply Chain World Conference and Exposition, the supply chain design is location, location, location. The emphasis of site location is of strategic importance to all organizations seeking to maximize profits and minimize costs. Different organizations may focus on different factors and methods to determine