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.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Aaker, D.A. (1984): Developing Business Strategies. (John Wiley & Sons) New York
Ackoff, R.A./ Gharajedeghi, J./ Finnel, E.V. (1984): A Guide to Controlling your Corporation’s Future. (John Wiley & Sons) New York
Anthony, R.N. (1992): The Management Control Function. The Harvard Business School Press, Boston, Massachusetts
Bender, P.S. (1985): Logistic System Design in: Robeson, J.F. and House, R.G. (eds), The Distribution Handbook. (Free Press) New York, 143–256
Bertazzi, L./ Speranze, G. (1998): The minimization of the logistic costs on sequences of links with given shipping frequencies. In: Advances in Distribution Logistics. (Springer Verlag)
Boutellier, R./ Kobler, R.A. (1998): Strategic eurologistics design. In: Advances in Distribution Logistics. (Springer Verlag)
Bowersox, D.J. (1992): Logistical Excellence, it’s not business as usual (Digital Equipment Corporation) Burlington
Bowersox, D.J. et al. (1995): World Class Logistics: the challenge of managing continuous change. (Council of Logistics Management) Oak Brook, Illinois
Broekstra, G. (1984): MAMA: Management by Matching, a Consistency Model for Organizational Assessment and Change in Trappl, R. (ed), in: Cybernetics and Systems Research 2 (Elsevier Science Publishers B.V.) North Holland
Broekstra, G. (1989): Het creëren van intelligente organisaties. (Eburon) Delft, the Netherlands (in Dutch)
Bruns, A. (1998): A local search heuristic for the two-stage capacitated facility location problem. In: Advances in Distribution Logistics. (Springer Verlag)
Cohen, M.A./ Fisher, M./ Jaikumar, R. (1989): International Manufacturing and Distribution Networks: a Normative Model Framework, in: Ferdows, K. (ed), Managing International Manufacturing (Elsevier Science Publishers B.V.) North-Holland, 67–93
Cook, R.X./ Burley, J.R. (1985): A Framework for Evaluating International Physical Distribution Strategies, in: International Journal of Physical Distribution and Materials Management 15, 4, 26–38
Corbett, Ch./ Blackburn, J.D./ Van Wassenhove, L. (1998): Partnerships or tug of war? In: Advances in Distribution Logistics. (Springer Verlag)
Daduna, J. (1998): Modeling the distribution processes of tour operator catalogues. In: Advances in Distribution Logistics. (Springer Verlag)
Diks, E.B./ Kok, A.G. de (1998): Transshipments in a divergent 2-echelon distribution system. In: Advances in Distribution Logistics. (Springer Verlag)
Fine, C.H./ Hax, A.C. (1985): Manufacturing Strategy: A Methodology and an Illustration, in: Interfaces. 15, 6, Nov.–Dec, 28–46
Fleischmann, В. (1998): Design of freight traffic networks. In: Advances in Distribution Logistics. (Springer Verlag)
Geoffrion, A.M./ Powers, F.P. (1995): Twenty years of strategic distribution design: an evolutionary perspective, in Interfaces 25, Sept.–Oct./ 105–127
Hagdorn, L. (1996): Decision Support for Strategic Planning in Logistics. Ph.D. Thesis, Erasmus University Rotterdam, Rotterdam School of Management, The Netherlands
Hagdorn, L./ Warffemius, P. (1995): Decision Support Systems for Strategic Planning in Logistics -an overview-. Working paper in Management Report Series of the Rotterdam School of Management, Erasmus University Rotterdam, The Netherlands
Klose, A. (1998): Obtaining sharp lower and upper bounds for two-stage capacitated facility location problems. In: Advances in Distribution Logistics. (Springer Verlag)
Korhonen, P./ Moskowitz, H./ Wallenius, J. (1992): Multiple criteria decision support - A review. In: European Journal of Operational Research 63. 361–375
Kraus, S. (1998): Analysis of the environmental impact of distribution systems estimating the length of trunk tours. In: Advances in Distribution Logistics. (Springer Verlag)
Maljers, F.A. (1995): Strategische Allianties. Erasmus University Rotterdam, Rotterdam School of Management, the Netherlands, (in Dutch)
Mintzberg, H. (1994): The rise and fall of strategic planning. (Prentice Hall International)
Mintzberg, H./ Raisinghani, D./ Thèorêt, A. (1976): The structure of “Unstractured” Decision Processes, in: Administrative Science Quarterly 21, June, 246–275
Mourits, M. (1995): Design of a Distribution Planning Support System. Ph.D. Thesis, Technical University Delft, The Netherlands
Porter, M.E. (1985): Competitive Advantage. (The Free Press)
Rushton, A./ Saw, R. (1992): A Methodology for Logistics Strategy Planning, in: The International Journal of Logistics Management 3, 1, 46–62
Tüshaus, U./ Wittmann, S. (1998): Strategic logistic planning by means of simple plant location: a case study. In: Advances in Distribution Logistics. (Springer Verlag)
Van der Laan, E./ Salomon, M./ Van Nunen, J.A.E.E. (1998): Reverse logistics and inventory control with product remanufacturing. In: Advances in Distribution Logistics. (Springer Verlag)
Van de Ven, A.D.M./ Ribbers, A.M.A. (1993): International Logistics: A Diagnostic Method for the Allocation of Production and Distribution Facilities, in: The International Journal of Logistics Management 4, 1, 67–81
Van Nunen, J.A.E.E./ Beulens, A.J.M./ Benders, J.F. (1984): On solving assignment type mixed integer linear programming problems within decision support systems, in: Wissenschaftliche Zeit\-schrift der Technische Hochschule Leipzig 8, 2, 89–95
Vos, G.C.J.M. (1993): International Manufacturing and Logistics, A Design Method. Ph.D. Thesis, Eindhoven University of Technology, The Netherlands
Wheelen, T.L./ Hunger, J.D. (1995): Strategic Management and Business Policy. (Addison Wesley)
Wlcek, H. (1998): Local-search heuristics for the design of freight carrier networks. In: Advances in Distribution Logistics. (Springer Verlag)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1998 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
van der Meijden, L.H., van Nunen, J.A.E.E. (1998). Strategic Decision Making for Logistics Network Design. In: Fleischmann, B., van Nunen, J.A.E.E., Speranza, M.G., Stähly, P. (eds) Advances in Distribution Logistics. Lecture Notes in Economics and Mathematical Systems, vol 460. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-46865-0_4
Download citation
DOI: https://doi.org/10.1007/978-3-642-46865-0_4
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-64288-6
Online ISBN: 978-3-642-46865-0
eBook Packages: Springer Book Archive