A global manufacturing company has hired a supply chain management consulting company to review its supply...

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Operations Management

A global manufacturing company has hired a supply chainmanagement consulting company to review its supply chain. Theconsulting company has recommened the manufacturer to conductperiodic review of its logistics network design and optimize itsnetwork of warehouses.

(i) Discuss why the manufacturer should periodically review itslogistics network design.

(ii) Discuss the advantages of having a small number ofcentrally located warehouses and having a large number ofwarehouses closer to the customers.

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1 It is considered as a prudent practise to establish a periodical review system to evaluate and realign the firms supply chain policy This is due to the fact that periodical review helps the firm counter the ever changing market and industry dynamics It will prevent any kind of dissonance between the perfect supply chain policy and the established supply chain policy Review activties thus help the firm establish a lean process in the firm thus translating it into greater fiscal efficiency and greater    See Answer
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