Physical network design is a strategic exercise which should be done taking a whole business perspective, accounting for long term business plans and re-evaluated at regular intervals. The supply chain and in particular the physical assets of the supply chain constitute a complex network whose design requires careful consideration. Many business modelling exercises centre around balances and trade-offs and network design modelling is no exception, whether it be the number of warehouses, utilisation of resources or management of supply and demand.

At the end of this session students will be able to:
• Discuss the need for strategic vision when carrying out network design activities.

• Identify the different aspects which must be considered when carrying out a network design exercise e.g. warehouses, manufacturing, transport costs and locations.

•Explain the fundamental elements of a network design model and some of the data requirements necessary to build network models.