Desired Response Time vs.

Number of Facilities graphs

The number of facilities increases the desired response time decreases. This relationship
indicates that having more facilities allows for quicker response times to customer demands. This
trade-off between the number of facilities and response time is crucial in designing an effective
distribution network.
Facility Costs vs. Number of Facilities
As the number of facilities increases, the facility costs also increase. This relationship indicates
that having more facilities leads to higher facility costs. Conversely, reducing the number of
facilities may result in lower facility costs. This trade-off between the number of facilities and
facility costs is an important consideration in the design of a distribution network.
Logistics Cost, Response Time vs. Number Of Facilities
The logistics cost decreases as the number of facilities increases, while the response time
decreases as well. This relationship indicates that having more facilities can lead to lower
logistics costs and quicker response times. Conversely, reducing the number of facilities may
result in higher logistics costs and longer response times. This trade-off between the number of
facilities, logistics costs, and response time is a critical factor in optimizing a distribution
network.
Inventory Costs vs. Number of Facilities
As the number of facilities increases, the inventory costs also increase. This relationship
indicates that having more facilities leads to higher inventory costs. Conversely, reducing the
number of facilities may result in lower inventory costs. This trade-off between the number of
facilities and inventory costs is an important consideration in the design of a distribution
network.
Transportation Costs vs. Number of Facilities
As the number of facilities increases, the transportation costs generally decrease. This
relationship indicates that having more facilities can lead to lower transportation costs.
Conversely, reducing the number of facilities may result in higher transportation costs. This
trade-off between the number of facilities and transportation costs is a critical factor in
optimizing a distribution network.
Compare Manufacturer storage with directshipping and Manufacturer storage with direct
shipping and in-transit merge
Manufacturer storage with direct shipping and in-transit merge involves the manufacturer storing
products and then shipping them directly to the end consumers. In this approach, the
manufacturer aggregates products and then merges them in transit to fulfill customer orders.
When comparing the two approaches, the direct shipping method (drop-shipping) may result in
longer response times due to increased distance and multiple stages for order processing. On the
other hand, the in-transit merge approach may have marginally higher response times but can
offer better customer experience as only a single delivery has to be received.
In terms of cost, the in-transit merge approach may have somewhat lower transportation costs
than direct shipping, and the handling costs may be higher at the carrier but lower at the
customer.
Both approaches have their own strengths and weaknesses, and the choice between them depends
on factors such as the nature of the products, customer expectations, and cost considerations.
Compare distributor storage with carrier delivery and Distributor storage with last - mile
delivery.
Distributor storage with carrier delivery involves distributors storing products and using package
carriers to transport them from the intermediate location to the final customer. This approach
allows distributors to stock slow- to fast-moving items at their warehouses, with very-slow-
moving items stocked farther upstream. It offers faster response times than manufacturer storage
with direct shipping and in-transit merge, but lower product variety and higher costs to provide
the same level of availability as manufacturer storage.

On the other hand, distributor storage with last-mile delivery entails distributors storing
inventory closer to customers and delivering products directly to the customer's home instead of
using a package carrier. This approach requires a higher level of inventory than other options due
to lower aggregation, making it suitable for relatively fast-moving items needed quickly. It offers
very quick response times, same-day to next-day delivery, but incurs higher transportation costs
due to minimal scale economies.

In summary, the distributor storage with carrier delivery provides faster response times than the
last-mile delivery approach, but the latter offers very quick delivery and is suitable for relatively
fast-moving items. The choice between the two depends on factors such as the nature of the
products, customer expectations, and cost considerations.

Compare manufacturer/distributor storage with customer pickup vs retail storage with

customer pickup.
Manufacturer/distributor storage with customer pickup involves inventory being stored at the
manufacturer or distributor, and customers ordering online or by phone and then picking up the
products at specified points. This approach allows for fast same-day pickup for locally stored
items and is suitable for both fast-moving and slow-moving items. It offers a response time
similar to package carrier delivery with manufacturer or distributor storage, and it can match any
other option in terms of inventory costs. However, it may have higher facility costs if new
facilities need to be built, and it offers lower product variety compared to other options.
On the other hand, retail storage with customer pickup entails inventory being stored locally at
retail stores, and customers walking into the store or placing an order online or by phone and
then picking it up at the retail store. This approach allows for immediate same-day pickup for
locally stored items and is suitable for fast-moving items. It offers the highest response time
among distribution options and higher inventory costs compared to other options. However, it
has lower transportation costs and can provide same-day immediate pickup for items stored
locally.

In summary, the choice between the two approaches depends on factors such as the nature of the
products, customer expectations, and cost considerations.