What is the purpose of a logistics network design?

The purpose of a logistics network design is to establish an optimal framework for effective product movement and storage. This involves strategically planning how products will flow through the supply chain, where they will be stored, and how they will be transported. An effective logistics network ensures that products are delivered to the right location, in the right quantity, and at the right time, which is critical for meeting customer demands and maintaining operational efficiency.

By focusing on optimizing the logistics network, businesses can enhance their overall performance, reduce costs, and improve service levels. This framework takes into account various factors such as location of warehouses, transportation routes, inventory levels, and supplier capabilities. Consequently, a well-designed logistics network supports the seamless operation of the supply chain, facilitating rapid response to changes in demand while minimizing delays and redundancies.