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Strategic Decision Making for Logistics Network Design

  • Lorike Hagdorn van der Meijden
  • Jo A. E. E. van Nunen
Conference paper
  • 232 Downloads
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 460)

Abstract

The process of creating competitive logistics networks is often very complex: a range of alternative networks needs to be developed, analyzed and compared; a wide variety of quantitative and qualitative criteria are considered and several parties with differing functional backgrounds and differing disciplines are involved. To reduce this complexity, we present a framework for logistics network design, which, as we have experienced, enhances the quality of the design process as well as the quality of the resulting network. After analyzing previous research, we present our framework for logistics network design. The framework starts with an analysis of external and internal developments and uncertainties. Via this analysis, business choices are made on entrepreneurial topics, technological issues, organizational aspects and human resource questions. These business choices are combined into scenarios and lead to the developments of alternative logistics networks. In the development and in the evaluation of alternative logistics networks, the decision support system SLAM plays an important role. The final steps in the framework are the final selection of a logistics network, the authorization and the implementation and review of this selected network.

Besides these steps in the framework, also the different types of participants and their role in the framework are worked out and the routing of the decision-making process through the described steps is considered.

Finally, the framework is illustrated by two applications, one in the food industry and one in the business electronics industry.

Keywords

Framework scenarios external developments internal developments decision criteria decision support cases 

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Copyright information

© Springer-Verlag Berlin Heidelberg 1998

Authors and Affiliations

  • Lorike Hagdorn van der Meijden
    • 1
  • Jo A. E. E. van Nunen
    • 1
  1. 1.Rotterdam School of ManagementErasmus University RotterdamRotterdamThe Netherlands

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