Network Design Fundamentals
This strategic process involves determining the physical configuration and infrastructure of the supply chain, such as the location of central commissaries
What is Network Design?
In this structure, a central distribution hub serves multiple outlying points, such as a central laundry facility serving several hotels
What is Hub-and-Spoke?
This production strategy maintains a constant rate, such as a hotel bakery producing the same number of rolls daily and freezing the surplus.
What is Level Strategy?
Trade wars and sanctions impacting food imports fall under this category of global risk.
What is political risk?
The practice of using older stock first.
What is FIFO (First In, First Out)?
Network design dictates approximately this percentage of total supply chain costs through fixed structural decisions
What is 80%?
This inventory strategy involves moving supplies based on long-term seasonal forecasts, like stocking sunblock for summer.
What is Push Strategy?
This strategy involves sourcing from a nearby country to balance cost with speed.
What is Nearshoring?
This sourcing method involves bringing sourcing back to the home country to increase control and sustainability.
What is Reshoring or Onshoring?
the time it takes between ordering and receiving goods.
What is lead time?
During this phase of the network design process, mathematical tools are used to identify the most efficient configuration.
What is Phase 3? (Develop and Run Optimization Models)
This complex web of interconnected nodes is common in global hotel groups sourcing from multiple international markets.
What is a Matrix Structure?
This production approach adjusts staff levels and production to match fluctuating occupancy to minimize waste.
What is Chase Strategy?
Changes in customs and safety compliance, such as HACCP, are considered this type of risk.
What is Regulatory risk?
This is what the acronym HACCP stands for.
What is Hazard Analysis Critical Control Point?
This design factor considers the reliability of local ports, roads, and cold-chain rail links.
What is infrastructure?
This strategy delays the final form of a service, such as adding final seasonings to a base sauce only when a guest orders the dish.
What is Postponement?
This sourcing strategy involves using multiple international suppliers to avoid "single-source" failure.
What is Multi-sourcing?
In this coordination model, the supplier monitors and replenishes customer inventory to reduce order variability.
What is Vendor-Managed Inventory (VMI)?
A system where kitchen stations prepare specific parts of a dish.
What is the Kitchen Brigade System?
This specific phase of the design process involves analyzing "what-if" scenarios, such as a sudden spike in seasonal resort demand.
What is Phase 4 (Evaluate and Compare Scenarios)?
This coordination mechanism involves products being transferred directly from inbound to outbound transport with minimal storage.
What is Cross-Docking?
This mechanism involves joint business planning and forecasting between trading partners.
What is Collaborative Planning, Forecasting and Replenishment (CPFR)?
This strategy ensures inventory arrives precisely when needed, thereby eliminating storage costs.
What is Just-In-Time (JIT)?
This is an Italian phrase translating to "to the tooth," referring to the ideal, firm texture of cooked pasta or vegetables
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