Chopra outlines various distribution network designs, such as: Manufacturer storage with direct shipping (Drop-shipping) In-transit merge Distributor storage with carrier delivery Distributor storage with last-mile delivery Risk Management in Global Networks
: Long-term decisions like facility locations and outsourced functions.
Sunil Chopra’s Supply Chain Management: Strategy, Planning, and Operation (6th Edition) supply chain management sunil chopra 6th edition ppt
If you are building a presentation from scratch, use this structural layout to ensure comprehensive coverage:
A normal distribution curve showing the lead time demand, safety stock buffer, and the probability of a stockout. The uncertainty of demand given the specific attributes
The actual physical locations where product is stored, assembled, or fabricated. PPT slides should contrast centralization (efficiency) versus decentralization (responsiveness).
Maintaining a constant output rate and using inventory to absorb demand fluctuations. (Low capacity cost, high inventory cost). A simple diagram showed suppliers
The uncertainty of demand given the specific attributes a customer desires (e.g., short lead times, high customization).
—the difference between the value generated for the customer and the total cost incurred across the network. Decision Phases
Safety inventory is carried to satisfy demand that exceeds the amount forecasted. It buffers against demand uncertainty and supply lead time variables. Chopra provides detailed formulas to calculate safety stock based on a desired . Seasonal Inventory
Slide 3 — Designing the Network: Rahul used Chopra’s framework to explain nodes and links. A simple diagram showed suppliers, manufacturing, distribution centers, and retail. Bullet points summarized key design drivers: demand uncertainty, product characteristics, and service requirements.