Design different Distribution networks

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1、DesigningtheDistributionNetworkinaSupplyChainSunilChopraKelloggSchoolofManagement,NorthwesternUniversity2001SheridanRoad,Evanston,IL60208,U.S.ATel:1-847-491-8169;Fax:1-847-467-1220;e-mail:s-chopra@kellogg.northwestern.eduAbstractThispaperdescribesafram

2、eworkfordesigningthedistributionnetworkinasupplychain.Variousfactorsinfluencingthechoiceofdistributionnetworkaredescribed.Wethendiscussdifferentchoicesofdistributionnetworksandtheirrelativestrengthsandweaknesses.Thepaperconcludesbyidentifyingdistributi

3、onnetworksthatarebestsuitedforavarietyofcustomerandproductcharacteristics.0.IntroductionDistributionreferstothestepstakentomoveandstoreaproductfromthesupplierstagetoacustomerstageinthesupplychain.Distributionisakeydriveroftheoverallprofitabilityofafirm

4、becauseitdirectlyimpactsboththesupplychaincostandthecustomerexperience.Gooddistributioncanbeusedtoachieveavarietyofsupplychainobjectivesrangingfromlowcosttohighresponsiveness.Asaresult,companiesinthesameindustryoftenselectverydifferentdistributionnetwo

5、rks.DelldistributesitsPCsdirectlytoendconsumers,whilecompanieslikeHewlettPackardandCompaqdistributethroughresellers[3].DellcustomerswaitseveraldaystogetaPCwhilecustomerscanwalkawaywithanHPorCompaqPCfromareseller.GatewayopenedGatewayCountrystoreswherecu

6、stomerscouldcheckouttheproductsandhavesalespeoplehelpthemconfigureaPCthatsuitedtheirneeds.Gateway,however,chosetosellnoproductsatthestores,withallPCsshippeddirectly1fromthefactorytothecustomer.In2001,Gatewayclosedseveralofthesestoresgiventheirpoorfinan

7、cialperformance.AppleComputersisplanningtoopenretailstoreswherecomputerswillbesold[4].ThesePCcompanieshavechosenthreedifferentdistributionmodels.Howcanweevaluatethiswiderangeofdistributionchoices?Whichonesservethecompaniesandtheircustomersbetter?W.W.Gr

8、ainger,anMROdistributor,stocksabout100,000skusthatcanbesenttocustomerswithinadayoftheorderbeingplaced.Theremainingslowermovingproductsarenotstockedbutshippeddirectlyfromthemanufacturerwhenacustomerplacesanorder.Ittakesseveraldaysforthec