Supply Chains: A Manager's Guide

Chapter 14. Designing the Chain

The first step in designing a supply chain is to formulate a strategy for the chain. The most critical element of this strategy, described in the first section, is deciding how to make the tradeoff between flexibility and efficiency. Once your strategy is in place, the next step is to analyze your existing supply chain and identify options for improving it, as described in the second section. The third step is to use mathematical and simulation models to evaluate the options you've identified and produce the design that best satisfies your objectives. This last step is highly automated, but don't let that fool you—the most powerful tool for supply chain design is still your own insights into the nature of your ...