Factors Influencing Network Design Decisions

Presented by
Jamila Khatun Mitu
Id: 1507
Strategic Factors
Low cost leadership
Responsiveness
Technological Factors
Economies of scale
Flexibility
Macroeconomic factors
Tariff and Tax incentives
Fright and fuel cost
Exchange-Rate and Demand incentive
Tariff And Tax Incentives
Location decision
Product’s level of Technology
 Exchange rate and demand risk
caused by changes in the economies in different countries
 Freight And Fuel Cost
Suitable long –term contracts are needed
Political Factors
Rules of commerce
Ownership
 Infrastructure Factors
Availability of sites and labor, proximity to transportation, terminals, rail
Service, proximity to airport and seaport, Highway access , congestion
and local utilities are considered.
Competitive Factors
Positive Externalities Between Firms
Customer response time and Local Presence
Logistics and Facility Costs